Commercial in Confidence

As far as footwear goes, the name

Birkenstock Australia Birkenstock doesn’t need much of an
introduction. The brand has been around
Third Party Logistics (3PL) since 1774 and today is still recognised as a
global fashion classic.

For over 23 years Birkenstock have run their Australian operations from a warehouse in Collingwood which is
located less than two kilometres from Melbourne’s CBD. The area has become a popular inner-city suburb
where warehouses are converted for residential living, rather than for storing large volumes of shoes.

Challenges
Around 2012 Birkenstock faced several challenges. Sales were contracting due to the emergence of a new
online market place, with new footwear brands and parallel imports increasing. The second was the high cost of
running a sizeable warehouse in inner city Melbourne.
Birkenstock had already experienced a 3PL company but it had not gone to plan. They were hesitant to
outsource their stock, orders and reputation to another 3PL but there was little choice. So the decision was made
to reconfigure the premises to operate as a showroom, office space and to despatch of online orders. The
warehouse operations were to be outsourced.

Solution
Marcel Goerke, Managing Director,
Birkenstock Australia.
Cross Docks were the chosen 3PL with a planned transition time of
six weeks.
Not only do we now have complete
+ Simplicity transparency over our stock through
Any fear or concerns of losing control quickly diminished and were real time data, we simply could not
replaced with trust and enthusiasm as Cross Docks explained the have managed the increase in sales
pragmatic and simple process of transition, and of the long term when our brand went through a global
benefits both financially and operationally. spike in popularity. For us nothing
changed, other than the bottom line.
“Being able to see the pathway to transition and having everything
We had complete trust that Cross
explained in simple terms, gave me enormous confidence we had
made the right choice. We could see an exciting partnership and Docks had everything under control
automated system emerging” said Managing Director, Birkenstock
Australia Marcel Groerke.
+ Leadership
Cross Docks is owned, managed and led by an enthusiastic and positive Managing Director who has
created a network of staff that care about their clients and that is often what makes all the difference.
Knowing that the owner, CEO and MD was personally invested and extremely proud of the company’s
achievements says a lot about the level of customer service they deliver.
Feeling like you are not a small cog in a big wheel means a lot in business today.

+ Continuity
Working with a new supplier means having a lot of trust, not only in the business but with the management
team. Often you collaborate with the head of the business at first, when but as time goes on, they too
move on. Cross Docks is spearheaded by Shan Manickam who founded the business. Marcel explains,
after five years of working together we no longer need the same amount of contact with Shan (as the
operation is now fully automated), but we know he is always just a phone call away. And working
alongside a business that is similar in size as your business, has aligned values, drive and determination
just felt right. said Marcel.

+ Transition
The hard work was done by the time the physical stock was moved. The majority of the EDI auditing had
been completed but there was still adjustments that had to made from both sides to make sure the
technology could deliver and work for Birkenstock. Working together during this phase showed promise in
how Birkenstock and Cross Docks could, and would work together in the future. The transition happened
in a surprisingly short period of time. Cut once, measure twice is a core value at Cross Docks.

Results
A seamless transition and since then, complete transparency and visibility of stock movements 24/7 for
the past five years.
And over this time other benefits have emerged for Birkenstock in working with Cross Docks. What
started as a general distribution partner has developed into a strong, mutually reciprocated relationship
Cross Docks are now managing many of the online orders for Birkenstock, and are working with
Birkenstock to help meet their environmental objectives by closing the loop with packaging and shipping
cartons. And there’s still more to come.