Multinational department store - Proof of concept

TMX was engaged to improve the layout of a current Distribution Centre for a major Australian airline, in an effort to improve overall operations.

Region
Oceania
Service
Supply Chain
Industry
Merchandise & Apparel
The world moves fast. Stay ahead.
Subscribe to our newsletter for business transformation news delivered straight to your inbox.
Thank you!You've been successfully subscribed.

Share this post

Key challenges

With business growth front of mind, the client was looking for support in proactively understanding how business growth plans would impact the 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 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 investment.

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 but delivering a high potential benefit of ~4.3M​
  • Re-engineering the current VNA demonstrated the ability to double productivity with no investment required​
  • 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​
The world moves fast. Stay ahead.
Subscribe to our newsletter for business transformation news delivered straight to your inbox.
Thank you!You've been successfully subscribed.