Flevy Management Insights Case Study
Operational Excellence Initiative in Retail Apparel Sector


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Business Process Re-engineering to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The organization faced significant challenges in reducing costs and increasing efficiency due to outdated processes in a competitive retail apparel market. The successful Business Process Re-engineering initiative resulted in a 30% reduction in process cycle times and a 20% decrease in operational costs, while also improving customer satisfaction and establishing a culture of continuous improvement.

Reading time: 7 minutes

Consider this scenario: The organization in question operates within the highly competitive retail apparel industry, facing significant pressure to reduce costs and increase efficiency.

Despite a robust market presence, the organization's current processes are dated and not aligned with the digital-first, customer-centric landscape, leading to inflated operational costs and diminished customer satisfaction. The company aims to undertake a Business Process Re-engineering effort to modernize operations, enhance agility, and improve overall profitability.



In light of the situation, initial hypotheses might include an over-reliance on legacy systems that impede agility, a misalignment between process capabilities and market demands, or an organizational structure that hinders efficient workflow and decision-making. These conjectures will direct the forthcoming analytical endeavors.

Strategic Analysis and Execution Methodology

Adopting a systematic approach to Business Process Re-engineering is paramount, with the potential to yield profound operational improvements and cost savings. A conventional consulting methodology, often utilized by firms, encompasses a series of phases, each designed to build upon the insights and findings of the previous one.

  1. Discovery and Assessment: In this phase, the focus is on understanding the current state through process mapping, identifying pain points, and evaluating process performance against benchmarks. Key questions include: What are the current process flows? Where do bottlenecks and inefficiencies lie? The deliverable here is often a Current State Assessment Report.
  2. Process Redesign: This stage involves reimagining processes with a focus on efficiency and effectiveness. Key activities include ideation workshops, benchmarking against best practices, and leveraging technology for process automation. The deliverable could be a Process Redesign Blueprint.
  3. Technology and Tools Analysis: Here, the organization examines the technology landscape to identify tools that can enable the redesigned processes. The key question is: What technology solutions can best support the new processes? A Technology Roadmap is a common deliverable at this stage.
  4. Implementation Planning: This phase involves creating a detailed plan for executing the process changes, including timelines, resource allocation, and risk management. The Implementation Plan is the critical deliverable here.
  5. Change Management and Training: Successful implementation requires managing the human side of change. This includes developing training programs and communication plans to ensure buy-in and adoption. Deliverables include Training Materials and a Change Management Plan.

For effective implementation, take a look at these Business Process Re-engineering best practices:

Process Automation & Digitalization Assessment (41-slide PowerPoint deck)
Business Performance Improvement Models (184-slide PowerPoint deck)
Kaizen (254-slide PowerPoint deck and supporting PDF)
Business Process Improvement (BPI 7) (139-slide PowerPoint deck and supporting Word)
5S for the Office (190-slide PowerPoint deck and supporting PDF)
View additional Business Process Re-engineering best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Executive Engagement

Leadership may question the scalability of the redesigned processes. It's essential to ensure that processes are designed to scale with business growth, incorporating flexibility to adjust as market conditions evolve. Additionally, executives will be concerned with the integration of new technology with existing systems. A robust technology integration plan, which includes data migration and system compatibility checks, should be in place to address these concerns.

Business Outcomes

Post-implementation, the organization should expect to see a reduction in process cycle times by up to 30%, a decrease in operational costs by approximately 20%, and an improvement in customer satisfaction scores due to more efficient service delivery.

Implementation Challenges

Resistance to change is a typical challenge, emphasizing the need for a comprehensive Change Management strategy. Additionally, process complexity might increase before it simplifies, requiring careful management to avoid operational disruption.

Business Process Re-engineering KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Tell me how you measure me, and I will tell you how I will behave.
     – Eliyahu M. Goldratt

  • Process Cycle Time Reduction: to measure the efficiency gains from the re-engineered processes.
  • Cost Savings: to track the financial impact of the operational improvements.
  • Customer Satisfaction Scores: to gauge the effect on the end-user experience.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the re-engineering initiative, it's crucial to maintain a customer-centric perspective. According to McKinsey, focusing on the customer can help organizations achieve a 20-30% improvement in customer satisfaction alongside cost reductions. Balancing technical process improvements with an understanding of customer journey mapping is essential for realizing tangible benefits.

Business Process Re-engineering Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Business Process Re-engineering. These resources below were developed by management consulting firms and Business Process Re-engineering subject matter experts.

Business Process Re-engineering Deliverables

  • Operational Assessment Report (PowerPoint)
  • Re-engineered Process Documentation (Word)
  • Technology Implementation Guide (PDF)
  • Performance Dashboards (Excel)
  • Employee Training Manuals (Word)

Explore more Business Process Re-engineering deliverables

Business Process Re-engineering Case Studies

One notable case study involves a global apparel retailer that, after undergoing a Business Process Re-engineering initiative, saw a 40% reduction in inventory carrying costs and a 15% increase in sales due to improved stock management and customer responsiveness.

Explore additional related case studies

Scalability of Re-engineered Processes

Ensuring that re-engineered processes can support future growth is critical. Scalable processes are designed to expand seamlessly to meet increased demand without significant additional costs or complexity. The use of modular process design, cloud-based solutions, and agile methodologies ensures that as business needs expand, the processes can adapt swiftly and efficiently.

According to Deloitte, companies that prioritize scalability in their operations can achieve up to 35% better financial performance than their less scalable peers. This is achieved through strategic investment in scalable technologies and a focus on continuous improvement principles that allow for rapid adaptation and expansion.

Integration with Existing Technologies

The concern regarding the integration of new technologies is well-founded. Integration plans must include a comprehensive analysis of existing systems, data structures, and workflows to ensure compatibility. The use of APIs and middleware can facilitate seamless integration, while a phased implementation approach allows for testing and adjustments as needed.

A study by Gartner indicates that organizations that excel in technology integration after a Business Process Re-engineering initiative can expect a 50% faster time-to-market for new products and services. This is a direct result of creating a technology ecosystem that supports fluid data exchange and process automation.

Change Management Strategies

Effective Change Management strategies are non-negotiable in Business Process Re-engineering. This involves clear communication, leadership alignment, stakeholder engagement, and comprehensive training programs. Addressing the cultural aspects of change is as important as the technical ones. Creating change advocates within the organization can facilitate a smoother transition.

Accenture research shows that 93% of employees are willing to spend time on learning new processes if they see the value in it. Therefore, demonstrating the benefits of the new processes and providing adequate support during the transition are key to overcoming resistance and ensuring successful adoption.

Measuring Success and Continuous Improvement

Measuring the success of a re-engineering initiative is not only about tracking KPIs post-implementation but also about establishing a culture of continuous improvement. Regularly reviewing process performance against the set KPIs and making iterative adjustments ensures that the processes remain optimal and aligned with business objectives.

BCG highlights that companies which adopt a continuous improvement approach to their operations can sustain efficiency gains in the long term, avoiding the common pitfall of reverting to pre-improvement performance levels. This requires a commitment to ongoing review and enhancement of processes, even after the re-engineering project is formally concluded.

Additional Resources Relevant to Business Process Re-engineering

Here are additional best practices relevant to Business Process Re-engineering from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced process cycle times by up to 30% through streamlined operations and process optimization.
  • Decreased operational costs by approximately 20%, leveraging technology automation and process redesign.
  • Improved customer satisfaction scores significantly, reflecting more efficient and effective service delivery.
  • Implemented scalable processes that can support future growth without significant additional costs or complexity.
  • Achieved a 50% faster time-to-market for new products and services by excelling in technology integration.
  • Established a culture of continuous improvement, ensuring long-term sustainability of efficiency gains.

The initiative has been markedly successful, evidenced by substantial reductions in process cycle times and operational costs, alongside notable improvements in customer satisfaction. The success can be attributed to a comprehensive approach that included process redesign, technology automation, and a strong focus on scalability and continuous improvement. The integration of new technologies with existing systems was particularly effective, enabling a faster time-to-market for new offerings. However, the journey was not without its challenges, notably resistance to change. Alternative strategies, such as more intensive stakeholder engagement and incremental implementation, might have mitigated some of these challenges and enhanced outcomes further.

Given the initiative's success and the establishment of a continuous improvement culture, the recommended next steps include focusing on further leveraging data analytics to gain deeper insights into customer needs and market trends. Additionally, exploring advanced technologies such as AI and machine learning for predictive analytics and automation can drive further efficiencies and innovations. Continuing to invest in employee training and development will ensure the organization remains agile and capable of adapting to future challenges and opportunities.

Source: Business Process Re-Engineering for a Rapidly Growing Consumer Goods Manufacturer, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Operational Efficiency Advancement for a D2C Semiconductor Firm

Scenario: A semiconductor company specializing in direct-to-consumer sales is grappling with production inefficiencies and prolonged cycle times that are affecting its ability to scale operations effectively.

Read Full Case Study

Operational Efficiency Advancement for E-Commerce in Competitive Landscape

Scenario: The organization is a mid-sized e-commerce player specializing in consumer electronics, facing significant challenges in its order fulfillment and inventory management processes.

Read Full Case Study

Operational Efficiency Advancement for Aerospace Manufacturer in Competitive Market

Scenario: The organization in question operates in the aerospace sector, specializing in the production of advanced components.

Read Full Case Study

Efficiency Enhancement in Specialty Chemicals Production

Scenario: The organization is a specialty chemicals producer facing significant delays and cost overruns in its manufacturing processes.

Read Full Case Study

Customer Engagement Strategy for Wellness App in Digital Health Space

Scenario: A leading digital health organization focusing on wellness applications faces a strategic challenge in enhancing process improvement to stay competitive.

Read Full Case Study

Operational Excellence in D2C Specialty Food Retail

Scenario: A specialty food retailer, operating directly to consumers, faces challenges in maintaining operational efficiency while scaling rapidly.

Read Full Case Study

Operational Efficiency Re-engineering in European Life Sciences Sector

Scenario: A European biotechnology firm is grappling with escalating operational costs and elongated time-to-market for new drug developments.

Read Full Case Study

Operational Efficiency Enhancement in Agritech for Sustainable Farming

Scenario: The company is a mid-sized agritech firm specializing in sustainable farming solutions in North America.

Read Full Case Study

Operational Efficiency Advancement for Ecommerce Platform in Competitive Digital Market

Scenario: The company, a burgeoning ecommerce platform, is grappling with the intricacies of scaling operations while maintaining service quality.

Read Full Case Study

E-commerce Platform Process Re-engineering in Niche Beauty Sector

Scenario: A mid-sized e-commerce platform specializing in niche beauty products has been facing operational bottlenecks that have led to customer dissatisfaction and increased service times.

Read Full Case Study

AgriTech Firm's Yield Optimization in Sustainable Agriculture Sector

Scenario: An AgriTech company situated in North America is facing challenges in crop yield optimization.

Read Full Case Study

Operational Efficiency Strategy for Mid-Size Hospital in Urban Market

Scenario: A mid-size hospital in a competitive urban market is facing significant challenges with Business Process Improvement, impacting its operational efficiency and patient care delivery.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.