Food Logistics Network Strategy and Design

Project Sponsor: Network Strategy Manager

Client:

Leading UK Grocery Retailer

Category:

Supply Chain Consulting

11 July 2021

A strategic project to identify the optimal logistics network to support store growth over the next 10 years covering the UK and Ireland.

THE CHALLENGE

The current food logistics network consists of six/seven DC locations across UK and Ireland
How best to design the food logistics network to meet anticipated store growth over the next 10 years for the UK and Ireland business (throughput growth up 90% on base year)
How to accommodate the impact of peak trading periods, differing product category growth, and network capacity limitations from automation and existing facility layouts

OUR APPROACH

Built baseline model build using our network design software
Agreed appropriate scenarios to model, to ensure robust modelling but allowing ranges of options
Network modelling of several future scenarios to determine the optimum number of DCs to support store growth, considering relevant warehouse and transportation costs
Output report and presentation with next steps agreed

CUSTOMER BENEFITS

The customer received a detailed report identifying the optimum logistics network configuration and the associated cost base to support the 10 year store growth plan. This supporting ongoing strategy presentations to the Board to agree the direction of Food logistics operations, and options to consider.