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Key challenges
The client, a leading domestic and international Australian airline, was seeking to improve current distribution center (DC) operations in relation to layout, deployment of appropriate technology, efficiency and safety to reduce operating costs and accommodate growth. They were facing challenges with:
Outdated DC: The airline's engineering business was operating three main warehouses across Australia in Sydney, Melbourne, and Brisbane. The DC was outdated and required review to optimize post-COVID returns of aircraft volumes and maintenance requirements.
Data: The client lacked dimensional data of their SKUs within the current facility and Warehouse Management System.
Operational flow: The Sydney DC facility was experiencing challenges across operational flow, considering movement and storage of freight, location of dispatch and receiving docks, and inbound/outbound vehicle movements.
Our approach
TMX undertook a three phased approach to understand and document business requirements. This allowed TMX to:
- Develop a future solution
- Consider automation
- Provide supporting financials
- Develop an implementation roadmap
A series of stakeholder workshops were undertaken, ensuring the client was at the forefront of the decision making. Additionally, site visits and a detailed financial assessment were conducted to support the final outcomes and deliverables.
The results
TMX were able to deliver a number of significant outcomes for the airport's automation plan, including:
- Growth assumptions and storage design levels informed three automation concept development options to the client via Miniload, AMR, or Autostore with supporting financials provided to each option.
- The Autostore option was outlined and recommended by TMX as the most financially compelling option for the client whilst also performing best against other options outlined across solution risk, change management, order availability and safety. TMX additionally outlined a supportive indicative transition plan to deliver the recommended solution.