Warehousing & Logistics Requirements all Sewn Up at Picard

Picard produces high-quality leather handbags, suitcases and accessories since 1928 at their site in Obertshausen near Frankfurt, Germany.
A fourth / fifth generation family business based in Germany, Picard are renowned for producing a range of highly functional, stylish products – always on trend and using the very latest designs and colours in vogue.
Great attention to detail is paid during the production process and only the highest quality of leather is used. Picard mainly distributes within Germany, with export to other European countries, Russia and Japan accounting now for over 25% of their business.

Michael Marienfeld, now a director at The Logistics Business, was first introduced to the family business in 2001, when he was asked to assist in the reorganisation of their warehousing and logistics operations on their 7.500 m2 site near Frankfurt. The location is used mainly for storing finished products – production takes place in Germany in addition to a number of overseas factories including China, Ukraine, Tunisia and Bangladesh.

Following his advice and implementation of a series of recommendations, the business went on to win a number of awards for outstanding customer service within SME’s sector.

Eleven years on, Michael was asked once again to review operations at this location. In the intervening years, the company had experienced significant growth and it was felt that the current operation had reached its maximum capacity. The initial brief was to make use of an area of space up until now not utilised on the existing site. It would provide an estimated additional 15% warehousing capacity and this together with some reorganisation internally of existing space, could be the solution.

The Logistics Business carried out a comprehensive review of current operations and agreed on a number of strategic assumptions. The analysis revealed that with only minimum growth in inventory and a number of other external uncertainties in the German market, the advice would be for the company not to invest in constructing additional warehousing on-site. The suggested plan was to optimise the current layout and outsource external warehousing to manage peak flow of products and larger items such as suitcases off site – thus creating the additional space required, without the need for investing in a further building on an already constrained site surrounded by private residences.

This enabled Picard to delay any investment decision for a further 24 months.