Sunday, January 25, 2009

Tweeter Executes New Distribution Strategy!

The recent pressures on retail chains to drive down logistics costs, coupled with changes in store locations and physical sizes of electronics products, forced Tweeter to develop a new Supply Chain strategy. Tweeter commissioned a Supply Chain optimization study from Boston Industrial in late 2007 with hopes that a goal of 30% in cost reductions could be achieved.

Working closely with the Tweeter team, BIC developed a strategy for consolidation, along with a six-month implementation plan. This rapid deployment plan is underway, and has allowed Tweeter to obtain a high amount of savings in the early stages of implementation. The strategy will produce the following results:

  • Consolidation of 4 Distribution Centers into 2 locations, significantly reducing operating costs

  • Down-sizing of 3 other Distribution Centers to cut overhead charges

  • Square Footage Savings of 300,000sf throughout the entire Supply Chain

  • Projected Savings of over $5M in Supply Chain Costs

  • Reduction of Tweeter’s Supply Burden by over 30% in a 6 month period

Tweeter and BIC worked collaboratively in the selection of new facilities, incorporating Tweeter’s operational needs and concurrently minimizing logistics costs. The Tweeter / BIC team completed the detailed design of new facilities, coordinated build-out with new landlords and created a smooth transition plan using internal and external resources. This role incorporated project execution to align MIS, HR and Operations departments to effectively transition to the new framework.

BIC has vast experience in helping companies design and implement Supply Chain cost reduction strategies in a seamless manner. Each client requires broad skill sets, attention to detail and day-to-day coordination activities; directed toward executing an overall project plan. Companies that have successfully utilized BIC services and reduced logistics costs include The Holmes Group, Party City and Vi-Jon, Inc.


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