Operating model design for a multi-channel retail group
Case study:
Operating model design for a multi-channel retail group
- Situation
- Major European specialty retailer operating in more than 14 countries with a large store footprint faced rising margin and cost pressure due to the rise of e-commerce and platform competition
- A highly decentralized and heterogeneous country structure slowed deployment of group initiatives and prevented the business from leveraging scale
- Actions
- Ran a detailed cross-country diagnostic on structures, processes and systems and formed a clear view of pain points and opportunities
- Designed and recommended a target operating model for headquarters, regional clusters, countries and sales channels with distinctive changes in roles and decision rights
- Defined governance and core processes for key functions including merchandising, supply chain, marketing and customer experience
- Set global and local team staffing levels, spans of control and resource allocation
- Built a detailed business case with FTE and cost impact and defined the roadmap for implementation and capability build-up
- Results
- New operating model designed and approved by the board and implementation started
- More than €120 million in annual savings delivered through structural simplification, process streamlining and resource optimization