Relocation to Low-wage Country

Company

A Eurasian Publishing Company

Eurasian Company 1
Industries
1 + Employees
Size
Germany/Poland
region
The Challenge

After our customer's patent for 3D postcards and maps had expired, they were facing massive pressure from European competitors who were now able to develop, produce and sell very comparable products on the European market. Our customer's strategic response was to add a new sales channel to their sales approach: e-commerce (Amazon, eBay, etc.). This channel promised great margin potential, but required a lean order processing and fulfillment process, preferably in a low-wage country. If our customer would be able to relocate their German distribution center to a low-cost country in Eastern Europe, they would most likely be able to lift the sales potential in e-commerce.

The Final Impact

Reduction of order processing and fulfillment costs per unit by >70%

Increase of annual sales by >$1.2 M