As our client’s sales grew rapidly, so did the volume of merchandise returns. Their previous Returns distribution center was the oldest building in their supply chain network and was at capacity from both a storage and throughput perspective. They needed to activate a new facility equipped to process and store the greater volume of returns. A new dedicated Returns DC would enable better visibility of inventory, as well as allow them to quickly get product back into the marketplace to maximize margins instead of selling it later at a discount.
- Building a solid business case that required Board of Directors approval given the $500M+ cost of the new facility
- Complex program operated with multiple workstreams (facilities, systems, MHE, process redesign, operations transition) and many interdependencies between the workstreams
- Ramping down an old facility while ramping up a new one without impacting customers
Expertise + Leadership
Percipio built and managed the high-level program plan – from developing the business case and obtaining funding approval to planning for the build-out and activation of the new 1 million sq. ft. facility. Our program manager monitored all workstream activities along with risks and issues to keep things on track. We also partnered with our client’s supply chain experts to define new end-to-end business processes, and aligned their sales, demand planning, and store operations teams to direct inbound and outbound product disposition decisions. In addition, a new state-of-the-art footwear recycling operation was built out at this new DC to recycle unsellable shoes back into their raw materials. We managed the activation of this operation from concept and design through go-live, including the decommissioning of the previous recycling operation.
We enabled our client to increase sales margins and reduce obsolescence on returned products by reducing the time to get returned products back out into the marketplace, as well as reducing the amount of product that was normally given away or destroyed. Our client continues to reap the benefits of this new operation, and the project team received several company-wide awards for their work on this DC activation.
“Whenever I need project management help, I always turn to Percipio first. They are solid, local and understand what it takes to be successful at (our company).”- Program Director