Half the network, same two-day promise
Supply chain strategy & network design
- Context
A home décor and furnishings manufacturer in the $200–500M range, running its own delivery fleet alongside a 15-site distribution network covering the United States and Canada.
- What triggered it
The business was contracting, and a network sized for a larger company had become a fixed cost it could no longer carry. Closing sites was the obvious lever and also the dangerous one: customers across both countries had been promised two-day delivery, and the network existed to keep that promise.
- What we did
- Network analysis modelling service coverage, freight cost and inventory position for every candidate configuration, rather than closing the sites that looked most expensive in isolation.
- Worked out how far the company’s own delivery fleet could be extended, which turned out to be the hinge: fleet reach, not warehouse count, was what actually determined the two-day window.
- Ran it in three phases — analysis, then a pilot on one region to prove the model against reality, then replication across the remaining network.
- Results
- More than half of the 15 distribution centers closed.
- Two-day delivery coverage across the United States and Canada preserved throughout.
- Inventory and operating costs both reduced.
- Duration
18 months, across analysis, pilot and full replication