The Situation
The network was tuned to average demand but judged during seasonal peaks.
Inventory sat in the wrong nodes at spike periods, logistics ran reactively, service dropped, and cost rose.
Average-based design systematically underperformed at the only window that mattered.
What We Did
We redesigned for peak demand timing and proactive movement rather than reactive transport.
- Restructured the network around a hub-and-spoke model.
- Defined inventory positioning so stock sat closer to demand.
- Scheduled logistics operations in advance of seasonal peaks.
The Results
On-time fulfilment improved from 82.3% to 96.5%, while logistics cost moved down instead of up.
The network now performs at peak conditions it is judged on.
Strategic Takeaway
- Position inventory before the season, not after order surge begins.
- Networks sized for average demand fail in the only period they are tested.
Contact Gemba Concepts
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