Snackbrands - Leading Australian snack company

Imminent lease expiries posed issues for Snack Brands in navigating the industrial property market, due to their complex supply chain. TMX worked with Snack Brands to determine the optimum operational model to meet their day-to-day operations cost, achieving significant savings.

Region
Oceania
Service
Industrial Real Estate
Construction Project Management
Industry
Consumer Packaged Goods
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Key challenges

As a result of six manufacturing and distribution centers across Western Sydney, Snackbrands faced a wide ranging lease expiry date profile on each of the facilities. Due to the complex supply chain network and high customer demand, Snack Brands needed to establish true day to day operating costs.

Our approach

After assessing Snackbrands challenges, TMX undertook an end-to-end operational review establishing a business case to support the consolidation of Snackbrands distribution and manufacturing operations into one central site​. Through the project management of TMX the delivery of the facility and integration of the automation into the base building​ consisted of:

  • Determining the optimum operational model, where a 40,000 pallet (with 10,0000 pallets for future expansion) automated storage and retrieval system (ASRS) solution.
  • Coordination of the manual and automation design concepts, as well as the development of the full ASRS costing and associated benefits, management of the automation procurement process and supported the automation implementation and commissioning phases​.
  • Engaged expert consultants to provide planning and geotechnical advice to ensure the proposed sites were suitable​.
  • Our in-house architect assessed the building design to ensure the optimum product flow from receiving, storage to dispatch while also maintaining regulatory compliance​.

Snackbrands partnered with TMX who developed the business case, ran the property procurement process and project managed the build. This end-to-end service ensured the facility was delivered to its highly technical specifications with the integration of automation.

Neville Tapp, Director of Supply Chain Operations, Snack Brands
The results

After activating the recommended solutions, Snackbrands was able to achieve considerable savings, including:

  • Initial AUD$4.5 million annual saving with operational benefit over 10 years equating to over AUD$50 million in savings.
  • Created AUD$2 million saving from the preferred automation suppliers initial offer to their final offer, without the scope changing.
  • Through competitive tension, we were able to create AUD$4 million in savings from the preferred party’s second last offer to their final offer.
  • Over AUD$1.4 million worth of provision cost items were included within the base build, ensuring no capital outlay by the client for the final office and warehouse fitout items.
  • Negotiated relaxed make good obligations (estimated over AUD$1 million of savings) at their existing manufacturing facility.
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