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Key challenges
The client had existing distribution facilities operated by 3PLs (due to expire) and were facing increasing cost pressure.
Whilst the client had a regional supply chain team, they needed specialists with local supply chain skills to cover strategy development combined with detailed and technical ability in DC design.
Our approach
TMX reviewed the current business and assisted in defining the future business requirements. The client was also interested in understanding how the latest knowledge in logistics could be applied to their business.
Using our proprietary Network Modelling software, TMX developed a series of conceptual network models with different levels of process automation. This enabled the client to understand the cost and service implications of each network option, which had quite different approaches to meeting their requirements
From this, the client was able to visualize and conceptually understand both conventional and highly automated distribution approaches.
After developing this conceptual supply chain, TMX then carried out a range of cost, risk, and service assessment and validation exercises that allowed the client to make a clear and highly informed decision about which approach would best suit their business needs.
The results
The work completed helped determine the best approach to establishing the client's Melbourne DC, including a solution that could facilitate their future growth.