Redesigning Esprit's Global Supply Chain

Fast Growth in Sales Challenges Logistics

Esprit is one of the world’s most successful lifestyle labels. With its 13 product lines, the group, with global business headquarters in Ratingen, almost tripled its worldwide sales from 2001 to 2006, and has projected further growth in the years ahead inside an otherwise stagnant market.

Naturally, these ambitious growth goals imply an immense challenge for logistics. Faced with a rapid increase in quantities, the challenge is to maintain punctual availability for all items, while the assortment is updated and completely renewed from month to month and produced for the most part in Asia.

In addition, Ratingen supplies 640 of its own retail stores worldwide and 12,000 other sales points from the entire range of sales options, from catalog order companies to department stores to small boutiques.

In cooperation with LOCOM Consulting GmbH, Esprit is currently planning an entirely new global logistics strategy, in order to logistically manage the future’s enterprising goals, while improving customer service and increasing efficiency. The entire supply chain will be overhauled, from the suppliers to the points of sale, including transportation in the countries of origin, sea, air, and land transportation, and the network of warehouses.

This requires examining and redesigning warehouse locations and processes. Achieving a holistic control of the supply chain means that processes within the organization and the corresponding supportive IT systems must be readjusted, in order to sustainably cover all relevant business aspects.