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Redesigning the Operating Model and Turning Around Supply Chain Profitability for a Leading Super App and On-Demand Platform

E-CommerceE-Commerce
Industry
Consumer Goods, Retail & Distribution
E-Commerce
Client
Leading Super App & On-Demand Services Platform
Service
Management Consulting
Solution
Operating Model Transformation with Hub-and-Spoke Network and Retail Distribution Setup; Supply Chain and Operations Turnaround to Improve Profitability by Substantially Reducing Warehouse, Logistics, and Store Costs While Lifting Service to a Near-Perfect Order-Fill Rate

The Platform is a leading super app and on-demand services business, operating a retail and grocery distribution arm alongside its broader platform ecosystem. Its retail distribution operations span warehousing, logistics, and a network of dark stores and physical retail points serving high-frequency, time-sensitive consumer demand.

  • A centralised distribution model poorly suited to the speed and density requirements of on-demand retail fulfilment
  • Warehouse, logistics, and store cost structures misaligned with the margin profile needed for sustainable profitability
  • Inconsistent order-fill rates undermining customer experience and platform trust
  • Limited network design linking hub warehousing to spoke fulfilment points, causing inefficient last-mile cost
  • Operating model not yet structured to scale profitably as order volumes and store density increased
  • On-demand retail platforms operate on thin unit economics, and warehouse, logistics, and store costs are the primary levers for reaching profitability at scale
  • A hub-and-spoke network design is an increasingly standard model for on-demand and quick-commerce operators seeking to balance speed and cost
  • Order-fill rate is a direct driver of customer retention on super app platforms, where switching cost to competing services is low
  • Absent a profitable, scalable operating model, rising order volume compounds losses instead of driving the business toward profitability
1

Operating Model & Cost Diagnostic

Analysed the current distribution operating model, cost structure, and order-fill performance to baseline profitability drivers.

2

Hub-and-Spoke Network Design

Designed a hub-and-spoke distribution network and retail footprint to balance fulfilment speed with logistics cost efficiency.

3

Warehouse & Logistics Cost Turnaround

Redesigned warehouse and logistics processes to substantially reduce cost-to-serve while protecting service levels.

4

Store Operations & Fill-Rate Improvement

Implemented store-level operational changes to lift order-fill rate toward near-perfect service levels.

5

Implementation Roadmap & Profitability Tracking

Rolled out the new operating model with a profitability and service-level dashboard to track progress toward targets.

  • Hub-and-Spoke Network Design & Retail Footprint Plan
  • Distribution Operating Model Blueprint
  • Warehouse Cost Turnaround Programme
  • Logistics Cost-to-Serve Reduction Plan
  • Store Operations Playbook for Order-Fill Improvement
  • Profitability & Service-Level Dashboard
  • Phased Implementation Roadmap
01

Improved Profitability

Warehouse, logistics, and store cost reductions substantially improved the unit economics of the retail distribution business.

02

Near-Perfect Order-Fill Rate

Store operations improvements lifted order-fill rate to near-perfect service levels, strengthening customer trust.

03

Scalable Network Design

The hub-and-spoke model gave the Platform a distribution network structured to scale profitably with order volume.

04

Lower Cost-to-Serve

Redesigned warehouse and logistics processes materially reduced the cost of fulfilling each order.

20–30%
Reduction in combined warehouse, logistics, and store cost-to-serve (approx.)
98%+
Order-fill rate achieved post-implementation (approx.)
2x
Increase in fulfilment points supported under the hub-and-spoke model (approx.)
15–20%
Improvement in overall distribution profitability (approx.)
30%
Reduction in last-mile logistics cost per order (approx.)
90%+
Order volume served through the redesigned network (approx.)

The Platform now has a distribution operating model structured to scale profitably, beyond the immediate cost reduction. A hub-and-spoke network, disciplined cost-to-serve management, and a live profitability dashboard let the business grow order volume while continuing to strengthen unit economics.

Management ConsultingOperation & TransformationOperating Model DesignSupply Chain Turnaround

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