The Challenge
A leading retail chain with 25+ stores across all districts of Cyprus was running a fragmented logistics operation. Each store managed its own supplier relationships and delivery scheduling, creating several pain points:
- Duplicate deliveries — Multiple trucks from different suppliers arriving at the same store on the same day
- Inefficient routing — Partially loaded trucks making long runs from Limassol to Paphos, Nicosia, and Famagusta
- Stock imbalances — Some stores overstocked while others ran out of fast-moving items
- No visibility — Head office had no real-time view of inventory across the network
- High cost — Logistics represented 14% of revenue, well above the retail benchmark of 6–8%
The Solution
EtnoWarehouse designed and operated a consolidated hub-and-spoke distribution model:
Centralized Warehousing
- All supplier deliveries redirected to our 3,500 m² Limassol warehouse
- Consolidated receiving eliminated 70% of individual store deliveries from suppliers
- Real-time inventory tracking via Odoo ERP with store-level allocation
Optimized Route Planning
- 4 delivery zones: Limassol/Paphos, Nicosia, Larnaca/Famagusta, Mountain routes
- Each zone served by dedicated trucks on fixed schedules (3x/week for high-volume, 1x/week for low-volume)
- Dynamic routing algorithm minimized empty backhauls
Store-Level Kitting
- Each store's order picked, packed, and labelled by aisle and shelf position
- "Floor-ready" delivery — stock went straight to shelves, not backroom sorting
- Digital proof-of-delivery with photo verification
The Results
| Metric | Before | After | Improvement |
|---|---|---|---|
| Logistics cost (% of revenue) | 14% | 9.8% | 30% reduction |
| On-time delivery | 87% | 99.5% | +12.5 pp |
| Vehicle movements per week | 85 | 42 | 50% fewer |
| Stock-out incidents per month | 22 | 3 | 86% reduction |
| Store manager time on logistics | 8 hrs/week | 1 hr/week | 87% reduction |
| Carbon emissions (est.) | — | — | 45% reduction |
What Made It Work
- Real-time data — Store managers ordered through a simple Odoo portal; head office could see stock across all locations in real time.
- Shared savings model — We structured the contract so cost savings were shared 60/40 (retailer/EtnoWarehouse) above a baseline, creating alignment from day one.
- Gradual rollout — Pilot with 5 stores in Limassol for 4 weeks, then expanded island-wide over 3 months.
Client Feedback
"We knew our logistics were inefficient, but we didn't realize how much until EtnoWarehouse showed us the data. The hub-and-spoke model cut our costs by nearly a third while improving service levels. The store managers love the floor-ready delivery — it's transformed their mornings."
— Supply Chain Director, Cypriot Retail Chain
Interested in optimizing your retail distribution? Contact EtnoWarehouse.