Key challenges
The client has a historically underinvested network and distribution center (DC) infrastructure predominately created through the acquisition of GIST, meaning they needed help with:
Relocation: Current sites were inadequately located with high degrees of network complexity with decreasing service levels and increasing logistics and supply chain costs.
Growth: Ambitious store growth has indicated the need for significant change within their network.
Some examples of complexity of the client's requirements include:
- Inbound and outbound network flows
- DC automation and mechanization
- Reverse logistics
- Sustainability
- Integrating a clothing and home network (Click & Collect and Retail)
Our approach
To address the various challenges the client was facing, TMX conducted the below approach:
- Develop a network strategy and optimization roadmap to align synergies and integrations within their grocery business.
- Multi-site deployment strategy, consolidating sites into several new national DCs.
- DC design used to engage automation suppliers for various sub-systems to obtain refined solutions and capital expenditure estimates.
The results
TMX were able to deliver a number of significant outcomes for the client, including:
- A qualitative and quantitative comparison of network options.
- An optimal level of warehouse automation to deploy.
- An omnichannel fulfilment framework.
- Refined capital investment requirements for building fit-out and automation deployment.
- The financial assessment revealed ~25M GBP p.a. tactical savings for the client.
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