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The case study outlines the issues faced by Osram''s Euro-logistics team from 1991 onwards. They were briefed to plan and implement strategic changes to the company''s European logistics operations. Stage 1 of the project was to reduce the number of European warehouses from sixteen to seven, phasing closure of individual country distribution operations. In Stage 2 (1996 onwards) Osram GmbH will take over ownership of all European stock and manage it centrally from Germany. This is an innovative move which has enormous implications for the organisation as a whole and for the ''daughter'' companies in particular. The case outlines both stages of the project and ends at the end of 1995, when Osram are in the latter phase of Stage 1, some national warehouses have been closed and the logistics and purchasing functions taken over by Germany. The decision point centres around the takeover of European stock, advantages/disadvantages, implications for the company, etc.