ILOS analyzes logistics consolidation and points to cost reduction in a large company in the fashion sector.
A large Brazilian company in the fashion and apparel sector was experiencing a scenario of operational integration after acquiring new brands. Each of these brands had its own distribution center, resulting in parallel logistics structures and limiting the capture of operational synergies.
Given this context, the company began evaluating the possibility of unifying its logistics facilities, seeking to reduce operational costs, simplify flows, and increase operational efficiency.
To support this decision, ILOS consulting was hired to analyze the feasibility of this unification. Based on an analysis of operational data and facility structure, alternative logistics configurations were developed to allow for a comparison of the impacts of each option.
The scenarios analyzed included different consolidation alternatives, as well as the possibility of deploying new facilities. Infrastructure alternatives and levels of automation to support unified operation were also evaluated. For each scenario, the necessary capital expenditures (CAPEX), operational gains compared to the current structure, and the operation's capacity to support future growth plans were estimated.
Macro layouts of the main alternatives evaluated were also developed, allowing for the analysis of the operational feasibility of the proposed configurations.
Among the options studied, one scenario stood out that could generate approximately R$ 1,5 million in monthly operating gains, with a payback period of just over two years, in addition to offering sufficient capacity to support the company's future expansion plans.
Based on these analyses, the project provided greater clarity on the next steps for the evolution of the company's logistics structure, serving as a basis for decision-making on investments and for defining the strategy for consolidating operations.
project type
- Optimization of the logistics network
Segment
- Fashion and clothing
ILOS identifies a logistics consolidation scenario with the potential to generate more than R$ 1,5 million in monthly gains.
Challenge
A large company in the fashion industry was seeking to assess the feasibility of unifying the logistics operations of different brands that had separate distribution centers. This fragmented structure made it difficult to capture operational synergies between the businesses.
ILOS solution
ILOS structured and evaluated scenarios for consolidating logistics operations, estimating necessary investments, operational gains compared to the status quo, and comparing the best alternatives.
- Analysis of the estimated tax benefits with the new CD
- Definition of areas to be served by the eventual distribution center in Minas Gerais.
- Sizing the necessary capacities in each scenario.
Results
The study identified a scenario capable of generating approximately R$ 1,5 million in monthly operational gains, with a payback period of just over two years, in addition to providing the capacity to support the company's future expansion plans and guiding decision-making regarding logistics investments.
- ILOS conducted realistic estimates of the tax benefits that could be captured, identifying that these gains were below the client's expectations.
- Recommendation not to open a new distribution center in Minas Gerais.
