Location analysis and merge of two trading companies from the motorcycle/bicycle wholesale and accessories sector
Our clients are two commercial companies which operate a bicycle and accessories trade. They are both in the B2B and in the B2C market. Both trading companies operate independently of each other but they belong to a Swiss company group from the motorcycle/bicycle wholesale and accessories sector.
The mandate included the logistical analysis of both locations. According the planning specification one of the existing logistic buildings will be no longer involved in the future. Therefore, a catalogue of criteria was prepared to replace one of the. In this context, it was analysed whether a merge/centralization of logistics could be considered meaningful/profitable from the entrepreneurs point of view.
Based on the results of the analysis, the resulting potentials as well as the customers management and strategy specifications the task of InterLog Management GmbH was to develop a logistics concept that sustainably match the future requirements of logistics and serve as a basis for management decisions.
The mandate covered a period of 6 months (January to June 2016).
The following phases were part of the mandate:
- Analysis of the logistics processes
- Potential determination / preparation of a catalogue of measures
- Preparation of a catalogue of requirements to determine a new location
- Analysis of a merger / centralization of logistics
- Preparation of a decision template: In or Outsourcing
As part of the overall logistics analysis of the locations it was determined that the existing premises at both locations were suboptimal due to various factors raised for the handling of logistics. Two scenarios were developed and elaborated in detail, by taking all influencing factors into account to ensure the location-related logistics structures.
For the first scenario, InterLog Management prepared a catalogue of criteria for the replacement location. In addition to the property characteristics adapted to the company, strategic factors were also considered. This means that sufficient capacities for a merger of both companies as well as growth forecasts were planned.
For the second scenario, InterLog Management analysed the complete outsourcing of logistics to an external logistics service provider. In a cost-benefit analysis the strengths, weaknesses, opportunities and risks of this scenario were shown to the client.
The mandate of InterLog Management GmbH prepared a resilient logistics concept for both locations that was tailored to the needs of the customer. The identified potentials within the logistics processes were considered and implemented by the customer.
The customer was able to evaluate a suitable logistics building with the catalogue of criteria prepared by InterLog Management subsequently checked and assessed as appropriate by InterLog Management. The scenario of outsourcing logistics to a logistics service provider was not considered anymore due to the customer's own corporate philosophy.
Initially, both locations will continue to operate independently of each other, as a short-term solution it is not feasible due to various factors. InterLog Management was able to clearly demonstrate the synergies of a merger to the customer. A merger of logistics at a later date is realistic.