Retail & Consumer Products

Optimizing Revenue and Service at a Footwear Returns Center

Activating a new returns facility equipped to process and store greater volume

Percipio led and managed the end-to-end program, from developing the business case and securing funding approval to planning, building out, and activating a new 1-million-square-foot distribution center (DC). Our program manager oversaw all workstreams, proactively managing risks and issues to ensure the program stayed on schedule, and aligned with objectives.

In close partnership with the client’s supply chain leaders, Percipio defined new end-to-end business processes and aligned sales, demand planning, and store operations teams to drive informed inbound and outbound product disposition decisions. As part of the initiative, we also designed and implemented a state-of-the-art footwear recycling operation within the new DC, enabling unsellable shoes to be recycled back into raw materials. Percipio managed this operation from concept and design through go-live, including the successful decommissioning of the legacy recycling facility.

The new returns and recycling operation enabled the client to increase sales margins and reduce product obsolescence by significantly shortening the time required to return products to market and decreasing the volume of inventory that was previously given away or destroyed. The client continues to realize ongoing value from the new facility, and the project team was recognized with multiple company-wide awards for their leadership and execution of the DC activation.

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As our client’s sales accelerated, the volume of merchandise returns increased in parallel. Their existing returns distribution center, the oldest facility in their supply chain network, had reached its limits in both storage capacity and processing throughput. To support continued growth, they needed to activate a new, purpose-built facility capable of efficiently handling and storing a significantly higher volume of returns. A dedicated Returns DC improved inventory visibility and enabled faster reintegration of product into the marketplace, helping maximize margins by reducing the need to sell returned items later at a discount.

Challenges

Developed a compelling, board-approved business case to support investment in a $500M+ next-generation facility
Led a highly complex, multi-workstream program spanning facilities, systems, material handling equipment, process redesign, and operations transition, with numerous interdependencies managed across teams
Executed a seamless transition between facilities, ramping down the legacy operation while ramping up the new site without disrupting customer service

Services