Key challenges
In navigating their supply chain complexities, Coles encountered a spectrum of challenges, including:
- Significant day-to-day operating expenses and the need for a bespoke, fully automated high bay.
- Varying lease expiry dates across their existing distribution center network.
- Limited options among owners willing to accommodate the scale of automation required.
- Necessity for confidentiality and a carefully managed communication strategy.
- Development of a contract interface bridging the gap between the landlord and automation installer.
Our approach
TMX actively addressed the client's challenges through a comprehensive engagement, providing solutions across various aspects:
- Development of detailed technical design documentation and architectural plans.
- Property procurement facilitated through a competitive developer tender and selection process.
- Skillful negotiation of Agreement for Lease and Lease agreements.
- Project management oversight, inclusive of the seamless integration of automation, for the successful delivery of the facility.
Compared to a manual warehouse, these new automated warehouses will be able to handle twice the amount of volume of goods on half the footprint. It's game changing.
— Matt Swindells, Chief Operating Officer, Coles Group
The results
TMX were able to generate significant results for Coles, including:
- Successfully reduced the owner's initial offer.
- Implemented value engineering in the design brief and concurrently conducted the property procurement process in NSW and QLD, creating additional negotiating leverage.
- Successfully negotiated down fixed annual rent review structures from 3% to 2.5%.
- Efficiently negotiated and finalized the Agreement for Lease within a tight 4-week timeframe to meet Coles' critical date.
- Sourced and secured a facility for Coles that aligned precisely with their specifications and desired location.
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