Supply Chain Audit Case Study: How End-to-End Supply Chain Risk Management Transformed a Fast-Growing Consumer Brand
Real results, measurable savings, and a scalable supply chain optimization strategy built for growth.
When the Founder and CEO of a rapidly scaling consumer electronics brand contacted Heimdall Supply Chain Consulting, the problem was clear:
“Our sales are exploding, but our supply chain isn’t keeping up.”
Despite strong demand, the company’s supply chain operations were under strain. Rising COGS, increasing quality issues, frequent inventory stockouts, and limited supply chain visibility were creating operational and financial risk. Communication across suppliers, contract manufacturers, and logistics providers had become fragmented as volumes increased.
The board was demanding answers. Leadership needed clarity (and a plan) fast.
Heimdall was engaged to conduct a comprehensive end-to-end Supply Chain Audit, with a focus on supply chain risk management, cost reduction, and operational scalability.
The Risk of Scaling Without Supply Chain Visibility
For high-growth consumer brands, rapid scale often exposes weaknesses across the supply chain. Without proactive supply chain risk management (SCRM), operational inefficiencies compound quickly.
In this case, Heimdall identified early warning signs common among scaling companies:
Rising cost of goods sold (COGS)
Supplier quality variability
Inadequate supply chain visibility
Manufacturing agreements misaligned with growth
Distribution networks designed for lower volumes
Demand fluctuations increasing operational risk
Without intervention, these risks threatened profitability, customer experience, and long-term scalability.
Heimdall’s role was to deliver data-driven clarity, identify immediate supply chain optimization opportunities, and design a resilient, scalable supply chain.
A Comprehensive End-to-End Supply Chain Audit
Heimdall deployed our proprietary End-to-End Supply Chain Investigation, a structured Supply Chain Audit, examining every stage of the supply chain, from component sourcing through reverse logistics.
The audit followed a proven supply chain risk management framework, combining cost modeling, operational diagnostics, and risk mitigation planning.
Supply Chain Audit Scope
Landed-cost analysis and margin modeling
Supplier capability assessment and risk scoring
Tier-1 and Tier-2 supplier quality audits
Contract manufacturing review and cost benchmarking
Supply chain network design and 3PL scenario modeling
SKU-level demand planning review
Packaging and freight optimization
Reverse logistics and warranty flow analysis
The objective was simple:
Identify where supply chain risk, inefficiency, and excess cost were limiting growth and correct them quickly.
Key Findings from the Supply Chain Audit
The audit confirmed that several operational areas were already performing efficiently, providing reassurance to leadership and validating internal decisions.
However, Heimdall also identified several high-impact supply chain risks:
Supplier quality inconsistencies inflating downstream costs
Contract manufacturing terms lacking performance accountability
Packaging inefficiencies limiting freight utilization
A distribution footprint driving excessive shipping spend
These issues were quietly suppressing margin, slowing fulfillment, and increasing supply chain risk as volumes grew.
Supply Chain Optimization Results & Improvements Delivered
1. Supplier Optimization & COGS Reduction
A critical LCD component had become both a quality risk and a major COGS driver.
Heimdall:
Conducted a global supplier search
Performed multi-criteria supplier evaluations (cost, quality, lead time, scalability)
Validated manufacturing and quality systems
Negotiated long-term purchase agreements
Results
Lower unit cost with improved component specifications
Tiered volume discounts enabling margin expansion
Reduced supply chain risk through stricter quality oversight
2. Contract Manufacturing Optimization
The existing contract manufacturing agreement lacked defined quality and performance standards.
Heimdall renegotiated the contract, delivering:
5% manufacturing cost reduction
Defined quality benchmarks and SLAs
Penalties for defect rates and non-compliance
Improved accountability for scrap and rework
This reduced operational risk while improving product quality and profitability.
3. Packaging & Freight Optimization
Packaging redesign became a major lever for logistics optimization.
Results included:
27% more units per 40’ HQ container
4% reduction in domestic parcel shipping costs
Fewer damaged units and returns
Reduced warehouse handling costs
This optimization lowered freight spend, improved sustainability metrics, and supported long-term scalability.
4. Distribution Network & 3PL Optimization
Rapid growth had outpaced the company’s fulfillment network.
Heimdall:
Redesigned the distribution network
Selected and onboarded two new 3PL partners
Negotiated rates and service-level agreements
Executed operational go-live
Impact
$500,000 in Year-One cost savings
Over one-day faster final-mile delivery
Ability to offer free shipping on accessories
Improved customer satisfaction and repeat purchase rates
The Final Outcome: A Scalable, Resilient Supply Chain
By the end of the engagement, the company achieved:
A diversified and resilient supplier base
Lower landed costs and improved margins
Reduced stockouts and lead times
Stronger quality control and supply chain visibility
Faster delivery and improved customer experience
Meaningful EBITDA improvement
Most importantly, leadership gained confidence and control with a supply chain built to scale.
Why Growth-Stage Companies Choose Heimdall Supply Chain Consulting
Heimdall specializes in supply chain consulting for companies facing:
Rapid growth with operational strain
Rising COGS and margin erosion
Supplier and manufacturer risk
Distribution and logistics inefficiencies
Limited supply chain visibility
Our performance-based supply chain consulting model aligns incentives and delivers measurable results without upfront fees.
Ready for a Supply Chain Audit?
If your supply chain is holding growth back, a Heimdall Supply Chain Audit can help restore control, reduce risk, and unlock profitability.
Take command of your supply chain— schedule a consultation now.