Milar’s distribution Network

Milar is a spanish appliances wholesale “cooperative”. They sell a lot of different brands in more than 400 stores.

Each Milar store is privately owned by different owners, but they work logistically together under the same brand.

These 400 stores are splited in the whole national territory, and this territory is divided per regions. In each region exists a central warehouse where products are stocked and ready to be soldin stores.

Therefore, there are different levels of logistics in this company that make him pretty interesting to analyze it quickly.

Since they sell a lot of different brand,they work with a lot of suppliers that are mainly connected with the wharehouse and Milar’s central purchase department. This department forecasts the quantity demanded according to seasonality and trends, in order to be accurate and provide a huge availability of products to their retailers.

Let’s see in the next picture how its distribution network works:

Milar.jpg

These are the different steps of the logistic process:

Step 1

Manufacturers of different appliances and different brads, send the products to Milar warehouses after order.

Step 2

Products are stocked in regional warehouse. Milar has several warehouses strategically located to serve all the stores regionally.

Step 3

Stores of the region makes orders to the warehouse. Stores carry the transport from warehouse to the store.

Step 4

Customer buys in the store or online. If online, they can A receive the products at home (pay the transport) or B at the store (free transport).

 

So this is how Milar’s distribution network and how a big company operates logistically. But what’s the secret connected to all these different elements interacting in the process? They have a taylor-made inventory software that let’s the information flow between warehouse, retailers and online customers.

Sources:

Interviews to different Milar retailers.

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