In the previous business model, each manufacturer separately shipped out cargo to the relevant Distribution Center (DC) at the Retail Region (located in EU and UK). At the DC, quality checking, picking and packing was carried out based on demand at each retail outlet and distribution was arranged accordingly. Main challenges faced
Lead time from supplier to customer ( 3- 4 weeks)
QC and Replenishing lead time high and not practical to meet market demand
Cost of Managing a DC ( both warehousing and resources) at EU and USA very high
As a result the retailer faced many difficulties in ensuring inventory was readily available to meet consumer demand.
The Free Zone hub solution was proposed to the retailer brands to shift the DC from EU and UK to Sri Lanka at Advantis Free Zone. We analyzed the existing business model of the customer and address the issues they faced.
Benefit to the Client
Lead time from supplier to AFZ ( 3- 5 days)
Quality Checking and Replenishing lead time is reduced. ( the rejects are identified from a week of supplier shipment rather than 4 weeks when arrived at DC in EU or USA)
Cost of Managing a DC is much less in Sri Lanka (both warehousing and resources) in comparison to EU and USA.
Pick and pack and container loading done at AFZ based on each retailer outlets requirement so eliminated having a DC at EU and USA.
Cargo directly from AFZ delivered to each retailer outlet. ( Cost and lead time savings)
Lot No. 127, KEPZ- Phase – 4, Katunayake 11450, Sri Lanka
+94 77 297 2539