‘Smart’ Distribution Hub Setup for a Saudi Arabian Business Group
Ensuring a successful launch of a distribution hub for Saudi Arabian Business Group through detailed benchmarking, price analysis, and distribution structure study.
Our client, an established Saudi Arabian Business Group, was not yet involved in the B2C market. On the basis of the given go-to-market strategy, the client expected to set up its delivery center at a rapid speed. In order to ensure the successful launch of a complete business case, the client needed an organizational model and an execution plan.
We deployed an on-site team in Saudi Arabia working 100% either on client site or in the field. More than 50 interviews conducted with key logistics and 3PL providers, distributors, and technology firms. In close collaboration with the client, a shareholder and investor roadshow was conducted in KSA.
Following the initial strategy, we conducted a deep dive into the ‘distribution hub’ setup. This included a detailed benchmarking of key competitors, analysis of price levels, and distribution structures. Based on the new market insights and parameters from the strategy a detailed operations model was created. These data points went into a full financial business case, which was condensed into an ‘investor expose’.
Within two months the client was able to have a complete and detailed business case. Subsequently, the client was able to raise ~60Mn USD from their shareholders for the initiative.