Expanding Lubricant Reach With Regional Supply Hubs
The client’s existing distribution strategy lacked scalability. Inventory visibility was poor across multiple warehouses, resulting in lost sales due to stockouts. Distribution partners were under-incentivized and lacked digital ordering capabilities. Export operations faced bottlenecks due to unclear INCOTERMS, pricing inconsistencies, and lack of customs knowledge for East Africa. Forecasting and demand planning processes were rudimentary and reactive.
We designed a scalable supply chain and distribution model focused on regional warehousing, digital order management, and tiered channel partnerships. We proposed a hub-and-spoke model centered on a JAFZA warehouse in the UAE, supported by bonded storage for East Africa exports. The client adopted a channel partner program with tiered incentives and digital order portals. Forecasting processes were upgraded with statistical modeling.
Audited current distribution flow, costs, and partner performance.
Defined tiered channel structure with KPIs and rebate schemes.
Designed regional warehouse model with bonded options for exports.
Implemented demand planning dashboard using historical data.
Trained supply chain team on INCOTERMS and regional customs clearance.
Integrated online ordering platform for B2B customers.
Consolidate inventory into regional hubs with bonded storage for exports.
Digitize order tracking and provide distributor dashboards.
Segment partners into Gold, Silver, Bronze with performance-based rewards.
Forecast using statistical tools with sales and seasonal inputs.
Develop export pricing policies aligned with FX fluctuations and port charges.
The client increased sales coverage by 240% within 18 months across GCC and East Africa. Inventory availability improved to 95%, and order fulfillment time dropped by 38%. Export revenue grew from SAR 7.1M to SAR 16.8M in 2 years. The new tiered distribution model attracted six new regional partners. Overall consulting ROI was 5.1x through revenue growth, margin optimization, and reduced logistics inefficiencies.
