Insight
Distribution Costs Can Eat 8% of Revenue —
And Most Companies Don't Know Where It's Going
Reimagining Sales Experiences
by Designing Connected
Ecosystems for
Automotive Retail.
Overview
Distribution is often treated as an operational detail.
Manufacturing gets the attention. Sales gets the target. Marketing gets the customer.
But between the factory and the customer sits a network of warehouses, routes, inventory, facilities and third-party providers that can quietly absorb millions.
The problem gets worse as companies grow through acquisition, geographic expansion and channel proliferation.
Distribution is often treated as an operational detail.
Manufacturing gets the attention. Sales gets the target. Marketing gets the customer.
But between the factory and the customer sits a network of warehouses, routes, inventory, facilities and third-party providers that can quietly absorb millions.
The problem gets worse as companies grow through acquisition, geographic expansion and channel proliferation.
Key Insights
Key Insights
Companies often optimise individual facilities or routes without asking whether the network itself is correctly designed.
Companies often optimise individual facilities or routes without asking whether the network itself is correctly designed.
Network complexity hides
in plain sight.
Acquisitions and expansion can leave businesses with overlapping warehouses, duplicated infrastructure and inefficient flows.
Acquisitions and expansion can leave businesses with overlapping warehouses, duplicated infrastructure and inefficient flows.
Growth can create
stranded capacity.
A smaller, better-designed network can improve service while reducing cost.
A smaller, better-designed network can improve service while reducing cost.
Cost and service are not always trade-offs.
The right network depends on where customers are, how quickly they expect delivery and what the economics of each channel look like.
The right network depends on where customers are, how quickly they expect delivery and what the economics of each channel look like.
Distribution is a strategic
design problem.
We're not the only ones saying it
We're not the only ones saying it
We're not the only
ones saying it