Redesigning a warehouse footprint

What they wanted

This food retailer wanted a strategic perspective on its warehouse footprint, following ongoing business growth. The current logistics operation was struggling to keep up with demand, leading to higher costs and challenges to maintain the quality of store deliveries.

What we did

We started with truly understanding the current situation by benchmarking cost performance and assessing bottlenecks and opportunities within the current supply network. Based on these insights, we developed a limited but complete set of footprint scenarios with detailed bottom-up business cases. For transportation we started with a centre of gravity study and simulated different delivery models using state-of-the art route optimisation software. By consolidating the warehouse footprint we could then develop a high-level mechanised material handling solution and draft the outlines of the greenfield building and surrounding plot. We facilitated a transparent and controlled decision-making process by keeping up with the different stakeholders, understanding their perspectives and adjusting our communication tactics accordingly.

What we achieved

We identified a value case that fits the business, with a potential of up to 20% logistics costs reduction per year. The follow-up included a comprehensive tender for the material handling solution and working together with real estate professionals to realise the new logistics site. IG&H is also setting up the program management overseeing the entire effort.

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