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Magna Valor
Magna Valor

European logistics network design for business from MEA

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Our Client was D2C business from MEA planning expansion into Europe markets

CapabilityNetwork designShare

Challenge

A D2C business from the Middle East expanding into multiple European markets faced significant supply chain inefficiencies using air freight express for last-mile delivery. The one-size-fits-all model was costly, limited scalability, and hindered the company’s ability to meet delivery time expectations and customer experience standards, negatively impacting profitability.

Actions

To improve efficiency and profitability, the company established a new European Business Unit with the following initiatives:

  • Road to Market Definition – Conducted long-term planning for market volumes, product flows, and order profiles per market.
  • Fulfillment Network Design – Scenario planning evaluated number and locations of fulfillment centers, comparing own investment vs. 3PL providers, and assessing business risks.
  • Technology Architecture Analysis – Reviewed and reconfigured WMS, OMS, and Supply Chain Planning tools to support the new network.
  • 3PL Selection and Negotiation – Led the process to select and contract 3PL partners in Poland and France after executive approval of network design.

Results

  • 4x Business Growth – Achieved in 1.5 years across Europe.
  • Reduced Operational Costs – Costs as a percentage of revenue decreased significantly.
  • Improved Customer Experience – Orders delivered in maximum 3 days, with 96% delivered within 2 business days.
  • Expanded Market Coverage – Served Germany, France, Spain, Italy, Sweden, Poland, and Romania across 10+ sales channels, including own stores and marketplaces (Amazon, Allegro, CDiscount, ePrice, eMAG).
  • Enhanced Efficiency and Productivity – Tailored supply chain design improved operational performance and customer loyalty.

Summary

By implementing a data-driven supply chain redesign, the Middle East D2C business achieved 4x growth in Europe, reduced operational costs, and enhanced customer experience. The new fulfillment network enabled fast, reliable delivery across 8 countries, demonstrating the critical role of analytics and strategic planning in operational and financial success.