Supply chain for luxury items

Supply chain strategy


A Swedish company selling luxury items, such as art, offer international hammer auctions, online auctions and private sales. Their supply chain issues are two-faced, outgoing and incoming logistics. For outbound deliveries the lead time is too long and reclamations and return flow is troubling the inbound logistics. Congested premises and a lack of performance measurements trouble all aspects of the supply chain.


MYSIGMA developed a four step supply chain strategy specifically tailored to match the needs of high-end luxury goods.

  1. After careful analysis the range offering was updated so that only profitable items were kept. The inventory policy of the remaining items were also updated so that service was kept high while stocks were slashed.
  2. The physical facilities received a face-lift so that the layout and workflow were better aligned.
  3. Performance measurements were introduced, so that improvements could be identified and later traced.
  4. A scheme for continuous improvements were put in place so that the company would stay competitive in the future


Our deliverables were the following

  • A calculated work model ready to take in use and a process with continuous implementation and monitoring.
  • A new layout of the current facility with easy to understand instructions for how to manage growth.
  • Well defined Key Performance Indicators and a QlikView dashboard to match that enables easy reporting and evaluation of operations.
  • An operations manual listing recommended work practices, standards, equipment and tools.