Published February 3, 2004
Marchon Eyewear is the world’s largest privately owned producer and distributor of fashion and technologically advanced glasses and sunglasses. The company carries various brands including: Calvin Klein, cK, Donna Karan, DKNY, Nike, Nautica, and Flexon.
A global marketer and distributor, Marchon has headquarters in New York. The company’s customers include independent and chain opticians and major department stores.
Problem Statement
With the growth of Marchon’s European operations, its European Supply Chain Network became dependent on several regional distribution depots that shipped directly to customers in their local country. These depots were supplied through a global network of
central warehouses, resulting in long lead times, a high level of back orders, stock outs, and increased operating costs through multiple handling and redundant stock.
Scope-Of-Work
Tompkins managed the rapid implementation of centralizing multiple European distribution depots into a single European Distribution Center. Tompkins performed the following activities:
- Determined the facility’s operational and equipment requirements
- Performed the site selection based on the qualitative and quantitative impacts on Marchon’s business, and then fit the design to the selected facility
- Performed the justification analysis for the consolidation effort
- Reviewed the information system requirements based on best operations
- Managed the acquisition and implementation of the operational equipment
- Managed the operational, inventory, and staffing aspects during the consolidation process
Results
Tompkins successfully designed an efficient, centralized European Supply Chain operation for Marchon. The results of the consolidation included:
- Improved productivity
- Increased supply chain visibility
- Increased fill rate
- Increased customer satisfaction