UK Network Re-design, New Warehouse Design

Project Sponsor: Director of Logistics and Distribution

Client:

Leading Pet Supplies Retailer

Category:

Supply Chain Consulting

11 July 2021

Network strategy to determine optimum locations, number and role of distribution centres to support growth. Generation of outline capital and operating costs to support decision-making process.

THE CHALLENGE

After several years of strong growth in goods and services, both in store and on-line, the existing distribution network was at capacity
Online business set to more than double to 10% of the business’ turnover over the next five years
New warehouse strategy required to support this growth

OUR APPROACH

Assess the forecast growth & how this translates into physical stockholding and throughput
Consider a range of storage options – from ‘deep store’ to ‘blue sky’
Calculate the number and optimum location of the warehouse facilities
Determine role of mechanisation as part of each warehouse design
Provide inventory impact for each scenario, as well as distribution cost impact
Generate final optimum locations overlaying land cost, labour cost and availability
Calculate fit-out costs, facility costs and operating costs
Final recommendations output and workshops to discuss and handover

CUSTOMER BENEFITS

Optimum new warehouse operations determined with capital and operating costs to support the decision, supporting an estimated 0.3% CoS reduction and significant reduction in miles travelled
Identification of transition timeline
Board report with recommendations, rationale and next steps