DFS Optimise Warehouse Locations to Increase Retail Sales
The Challenge
DFS wanted to take the warehouse space in the rear of store that was being used to store and deliver orders, and merge that space into the shop floor. In doing so DFS needed to consolidate these 96 warehouse locations into 20 dedicated Customer Distribution Centres (CDC’s) creating a more efficient network out of which to satisfy customer orders.
The goal was clear but DFS didn’t have the technology to visualise the existing warehouse structure, identify ideal CDC locations, and determine which postcodes were to be delivered by which CDC.
The Solution
DFS licenced CACI’s InSite FieldForce applications to firstly visualise the existing warehouse structure, and then optimise various “what if” models of what the future CDC network could look like. Over 4 years these models were turned into a reality as one by one new CDC locations were identified, property sourced, and the warehousing operation migrated. It was important to DFS from the outset that changes be data lead rather than gut feel.
In early 2018 the conversion programme was completed with the final two CDCs identified. With that crucial project now complete DFS refresh their sales and delivery data on an ongoing basis to ensure that the right postcodes remain allocated to the most suitable CDC in light of the number of deliveries each can fulfil.
The Results
Releasing former warehouse space in their store estate enabled DFS to generate incremental retail sales from a bigger shop floor while consolidating the warehousing and delivery into centralised CDCs in offsite locations.
Pinpointing the best CDC locations and determining the optimal delivery catchments for each ensures drivetime efficiency which is keeping the cost of fulfilling deliveries down.
As DFS continue to open new stores and demand for deliveries increases DFS are able to refine the CDC catchments quickly and easily to make sure the network remains efficient through a data driven approach.
Further information
If you would like to know more about how territory optimisation can help your business, get in contact
We have a range of solutions that can help you optimise your field force, including CallSmart and InSite FieldForce.
The CACI software has been a critically important tool to help us model various complex scenarios before making investments in the new network. We have worked closely with our CACI account manager to get the full benefits from the software and have been pleased with the results. We have delivered a significantly optimised supply chain infrastructure and freed up important selling space in our shops by moving operations offsite.
DFS optimise warehouse locations to increase retail sales