Multinational department store - Proof of concept

The client was looking for support in proactively understanding how their growth plans would impact their current network in Australia, requiring support from TMX on how to navigate the expected growth within their current network.

Region
Oceania
Service
Supply Chain
Industry
Merchandise & Apparel
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Key challenges

With business growth front of mind, the client was looking for support in proactively understanding how their growth plans would impact their current network in Australia, prioritizing optimization within the current production center in Marsden Park, as well as an understanding of further network footprint requirements.​

TMX was engaged to model complex and key functions of the Marsden Park production center operation in order to define realistic targets, test optimal processes, and understand the impact of automation. 

Our approach

To evaluate the current operations while considering the feasibility of additional automation, TMX collaborated with the client to produce a proof-of-concept simulation. The simulation was designed to test and validate the system’s ability to meet current and predicted growth volumes, and to measure the difference between current state and potential productivity. ​

TMX modelled a complex profile container unload, VNA turret truck operation, sortation of small and bulk goods, and an automation investment (AMR Tabletop Sorter). This enabled TMX to test the limits of the system and ascertain whether an automation investment would provide significant benefit.

The results

Simulation determined that instead of focusing on high CAPEX technology, benefits could instead be derived from an operational change:

  • The container unload process was optimized to avoid bottlenecks, with this tactical initiative requiring low investment and delivering a high potential benefit of AUD ~$4.3M per annum. ​
  • Re-engineering the current VNA demonstrated the ability to double productivity with no additional investment.
  • Simulating the proposed AMR system demonstrated that focusing on lower cost, higher benefit picking technology would be adequately justified by network benefits. The payback for the automation system was not justifiable in this regard​.
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