Operating model design for multi-channel retailing group
Situation:
- Major European specialty retailer with highly decentralized and heterogeneous country structure struggled to rapidly deploy strategic initiatives across countries and leverage group scale (e.g., buying infrastructure/tech, key processes)
- Changes in market and competitive environment, such as the shift from store-based to e-commerce retailing and commoditization of products, increased pressure on margin and overall cost
- Client needed a global operating model to enable omni-channel across 14 countries, 1,000 stores, and various digital touchpoints
Actions:
- Conducted baseline assessment to identify key pain points
- Analyzed structure, processes, and systems across countries
- Gathered stakeholder input for challenges and opportunities
- Developed multiple operating model options and assessed their feasibility, benefits, and risks
- Redefined relationships between holding company, countries, and sales channels
- Established clear roles and decision-making authority
- Designed processes and governance mechanisms
- Created RACI matrix for key processes
- Defined ownership for critical processes (merchandising, marketing, supply chain, customer service)
- Sized global and national departments
- Determined optimal resource allocation and staffing levels
- Quantified benefits like capability build-up and efficiency gains as well as transformation costs
- Built a detailed business case with FTE and cost impact
- Defined an implementation roadmap with milestones and risk mitigation
Results:
- Defined a new operating model with standardized structures per country clusters
- Achieved balance between global standardization and local adaptation
- Established clear accountabilities and decision rights
- Streamlined processes and eliminated duplication
- Developed a phased rollout plan with change management
- Identified substantial savings, quantified cost reduction and efficiency improvements to fund transformation and capability build-up
- Validated business case with finance teams
- Kicked-off implementation
