Creating a single, 10 year plan when multiple national distribution networks collide through acquisition.
Post acquisition by Canadian Tire Corporation, a reorganization saw FGL Sports folding the Mark’s chain into its own management structure. A complicating factor was that 10 year growth projections meant both chain DC’s would run out of capacity. Investments also required business cases for both MHE and WMS systems for both chains. They engaged SCA to develop a pragmatic, executable plan.
How we solved it:
We quickly determined a 4 step process that would identify issues and drive results:
- Develop a combined baseline analysis.Work with both chain project teams to determine current combined capacity, volumes, costs and flow of merchandise.
- Identify the right DC sizing, efficiencies and costs.Work with Client to understand sourcing options, % variability on flow vs replenishment volumes and calculate their impact.
- Develop plan models for comparison.We provided multiple stand alone vs combined scenarios and calculated their various sensitivities for sourcing and flow vs replenishment and impact on inventory.
- Calculate costs and identify efficiencies.Our recommendations included budget for MHE and WMS enhancements that would drive efficiency in the new, optimized network.