O C C A Z S P O RT

S C E N A R IO
A N A LY S I S
Louis PA L A N C A , Paul B O U L AY, Alexis G O U E D A R D
Sasha B E RT R A N D , Klervi BERGOT, Mia B R E U VA RT
O C C A Z S P O RT PRESENTATION

Founded by Provide parents with Already in 2014,

Sanjay Gupta in more affordable demand grew
2014 sport equipments rapidly, with sales
for their children amounting to around
$0.8 million.
CURRENT M A I N I S S U ES

Demand has risen sharply by 80%.

This sudden, unplanned growth
could become a real problem.
Indeed, if demand continues to grow
so rapidly, costs will outstrip
revenues.

Taking a long-term view, there is likely

to be a potential shortage of
products supplied by local suppliers.
S C EN A R IO N °1 : O nly in S aint-
Louis
Thanks to Excel solver, we can see that if we focus only on Saint
Louis we can’t respond fully to the global demand in 2023 and
2024

20 22

20 23

20 24
S C EN A R IO N °1 : O nly in S aint-
Louis
We can meet demand with a single warehouse
over 2022, but not over 2023/2024.

S o we decide to open 1 small warehouse in 20 23 to

meet this demand and 1 small and 1 larg e
warehouse in 2 0 2 4 to meet the demand.

It is therefore impossible for the company to

remain positioned with a single warehouse.
Indeed, with demand increasing significantly in a
relatively short space of time, it is absolutely
necessary to open at least 3 warehouses over the
years 2023/2024 to be able to meet demand.
 SCENARIO N°1 : Only in Saint-
Louis
Max Profit St
Louis- Denver
23

Max Profit St L-
Denver-ATL
24

To overcome this, we recommend opening a large distribution center in Saint Louis and a small distribution center
in Denver in 2023. This solution makes sense, as Saint Louis and Denver are central cities facing east and west
respectively, guaranteeing g o o d territorial coverage. Following this approach, our profits would be €7.7 million, an
increase of €3 million over one year.

For 2024, our recommended scenario is to expand the Denver distribution center, keep the large one in St. Louis
and open a third, smaller center in Atlanta. This optimization not only makes economic sense, as it significantly
increases our profits, but is also geographically coherent, as it enables us to better serve the entire country.
SCENARIO N°2 : Delivery next day

Sanjay is concerned about customers' desire for

faster delivery.

Indeed, speed of delivery is becoming an

essential criterion for customer satisfaction.

So, over the period 2022, 2 0 2 3 and 2024, we are

going to study the possibility of delivering to
customers the next day, analysing the
consequences for our company's margins.
 SCENARIO N°2 : Delivery next day

Every year the consequence of the next day

delivery is an increasing of the demand of 10%
and also a inscreasing of transporation cost by
20%.
That’s why we can see that we are less
profitable with next day delivery.

STANDARD DELIVERY NEXT DAY DELIVERY

2022 2022
SCENARIO N°2 : Delivery next day

We are making less profit on custom

deliveries compared to standard
ones, possibly due to the
transportation costs, which have
increased by 2 0 % despite a 10% rise
in demand.
Therefore, this scenario is not
optimal.
SCENARIO N°3 : Sourcing

ONLY
WATERLOO
SOURCING 2022

We decide to source only from Waterloo and store only in Seattle. We see
that each year the profit increases compared to traditional sourcing due
to the lower storage cost and the overall supply cost in Waterloo.
S C EN A R IO N °3 : S ourcing

ONLY WAT E R L O O ONLY WAT E R L O O

SOURCING 2023 SOURCING 2024
Synthesis of scenario results & Conclusion

W e recommend centralizing
our supplies to reduce
procurement costs.

To meet demand across all

regions and maximize profit, we
believe it is not optimal to
centralize our orders at a single
site (as in only St. Louis) but
to divide deliveries between
our different sites, specifically
St.
The profit increases between 2 0 2 2 and 2 0 2 4 Louis and Denver.
regardless on the various scenarios. Therefore, it is W e recommend to stay in
crucial to choose the most suitable one with the livraison standard.
highest possible growth and profitability
 THANK YOU

HOPE Y O U E N J O Y E D THE
H

P R E S E N TAT I O N