The Challenge
A leading Vaping and E-liquid company based in North America wanted to take full advantage of their strong growth in Europe. The company sold their products through distributors in Europe, who took a share of the company’s margin. To improve on their margin the company decided to take more control of their European business.
The company tasked ESCIMCO with setting up a European Distribution Centre, inbound transportation and last mile delivery services for them.
The Approach
ESCIMCO visited the company’s US-based production and warehousing location to understand the company’s products and operation. Given the nature of the company’s products the pilferage risk is extremely high. This meant that as part of the set up extreme care needed to be given to security measures.
The company rented a strategically located empty warehousing with office space. At first ESCIMCO tendered and acquired security measures, systems and services, followed by IT-services and telecommunications. Next ESCIMCO furnished the warehouse with racking based on the most optimal material flow and forecasted volumes.
ESCIMCO set up the inbound supply chain and last mile delivery services, while hiring local warehouse staff.
The Results
ESCIMCO managed to set up and have the European DC operational 8 weeks after the start of the engagement.
