DC Analysis, Design Enhancements, and Warehouse System Implementation

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Published March 16, 2017

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Cosmetic Product Company Conducts Analysis of Its DC to Consolidate Operations

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Company

The company provides its cosmetic products through a multitude of channels, including wholesale, spa and boutique, retail, and direct-to-consumer deliveries. It was acquired by a large global cosmetic company that was looking to leverage the combined North American operations.

Challenge

After being acquired, the parent company wanted to consolidate its North American distribution operations into a single distribution center (DC). There were two existing DCs, but the lease on one site was about to expire, and both facilities lacked sufficient space to attempt a simple merging of the facility operations. The enterprise resource planning (ERP) system also lacked the needed functionality.

Tompkins International’s Role

Led the assessment of current operational capabilities and requirements, and developed a strategic path forward for consolidated operations. The effort included developing a financial model complete with required capital investment, new operating costs, cut-over expenses, and a risk mitigation plan with expected return on investment (ROI).

The Results
  • Developed facility design that consolidated North American distribution into less total space while accommodating their aggressive growth plans
  • Supported selection and implementation of a Warehouse Management System (WMS) that addressed their unique multichannel distribution operations
  • Established phased implementation plan for both the WMS and the material handling equipment that would simplify the integration of operations and optimize cash flow requirements to achieve benefits
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