Case Study: a high-end furniture retailer achieves 27% total delivery cost reduction with Maine Pointe

High-end Furniture Retailer cuts total delivery costs 27% with Maine Pointe

Maine Pointe was engaged by a high-end furniture retailer facing pressure from new market competitors. The retailer needed to reduce its total delivery costs without harming its premium customer experience and while carefully maintaining relationships with its existing service providers. Maine Pointe's challenge was to optimize the retailer's distribution footprint and overall cost-to-serve to enable future growth.

A multifaceted Total Value Optimization (TVO) approach was implemented by Maine Pointe, focusing on logistics, warehouse operations, and SIOP. The solution included optimizing the distribution network, renegotiating final-mile delivery to create a client-branded service, and implementing new data analytics tools for better visibility. Maine Pointe helped the client achieve a 27% reduction in total delivery cost and a 23% improvement in EBIT, while moving from 0% to 90% branded final-mile deliveries for an enhanced customer experience.