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Key challenges
- The client has identified increased service levels and increased SKU range availability as strategic advantages over competitor and require support to pivot Melbourne & Tasmanian supply chain network to deliver outcomes.
- Recent consolidation of separate business units into an existing facility not designed for the unique requirements of each business unit.
- Productivity and capacity issues, due to a need to consolidate business units, having a negative impact on service levels and ability to service.
Our approach
- Pull apart existing supply model, apply strategic growth and initiatives, analyze and test optimal network model, and outline preferred future model and roadmap to deliver.
- Develop costs of future network concepts.
- Operational review to establish the baseline and operational characteristics of the business, the sales demand distribution and network flow in Victoria and Tasmania.
- Undertake site visits, including team member interviews and observation of process and site layout.
- Request and analyze site inventory and transactional data, to identify tactical opportunities for improvement in lay-out, slotting, process, systems and labor planning.
- Establish indicative cost and timeline for implementation of tactical DC improvements and associated benefits and service improvements.
- Developed a high-level timeline and transition plan to new purpose-built site.
The results
- Warehouse layout change options identified and change rollout plan developed.
- Warehouse process, IT system and automation opportunities identified with associated benefits documented.
- Recommendation included a network solution supported by an experienced 3PL provider to meet service requirements and service frequency recommendations of weekly distribution orders, daily sales orders to branches with last mile serviced by own vehicles or local 3PLs.
- A roll out plan proposed, commenced in 2022 and completed by September 2023.
The world moves fast. Stay ahead.
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