3PL Analysis for Lulu’s

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3PL Analysis for Lulu's

LuLu’s offers a select choice of clothing, shoes and accessories. Its brands consist of emerging new designers, and it buys in limited quantities to provide a boutique experience.

Project Objectives/Challenges

With rapidly increasing sales, operations faced shipping area congestion and required off-site storage due to lack of space in its current facility and an inability to expand the current building footprint.

LuLu’s sought an in-depth understanding of the facility’s operating requirements and costs so that it could choose the optimum strategy for its fulfillment operations.

What Sedlak Did

We conducted a comprehensive 3PL analysis assessing several alternative strategies that included: total in-house, self-performed facility; combined use of in-house and 3PL facility and equipment and/or labor; and total 3PL operation.

Our team also identified some “quick hit” improvement opportunities in the existing facility.

Results

We developed a master blueprint for LuLu’s operations based on a five-year business plan.

Our team also recommended a freight forwarder to consolidate shipments and improve quality assurance.

A new network model was designed to improve processes and product flow. Recommendations included functional space redesign and implementation of material handling equipment concepts.

Each recommended option was supported by a capital investment and ROI evaluation.

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