Rapid year-on-year growth: YOY growth of 30% presented challenges in managing expansion with a historically piecemeal approach to facilities.
Diverse SKU profile and facility design uncertainties: The diverse current and future SKU profile, varying in size, weight, and shape, created uncertainties in facility design.
Complex distribution network and upcoming critical date: 75% unit volume distributed into the primary distribution network and 40% across Victoria, Tasmania, South Australia, and Western Australia, necessitating a comprehensive future network solution.
Lease expiry: An upcoming critical date limited negotiating leverage for procuring a property solution.
Limited site availability for facility expansion: Limited supply of sites capable of accommodating a 73,920sqm (795,668sq ft) facility within a 10km (6.2mi) radius of the client's existing premises.
Here is a glimpse of what we did:
- Undertook an operational review, establishing the optimum warehouse and network design developing an “as is” baseline model and managing the growth expectations and throughout to 2027.
- Prepared a comprehensive business case report with financials quantifying an optimum transformation solution.
- Coordinated a 2-stage property procurement process negotiating all the commercial terms and conditions via Heads of Agreement.
- Utilizing a robust technical design brief and accompanying architectural drawings, we defined the base building needs of our client.
- Oversaw the legal process so both the Agreement for Lease and final lease were executed in a timely manner.
- Project managed the delivery of the facility, attending all design, construction and PCG meetings.
- Coordinated and programmed the fit-out elements into the construction phase.
Here are the benefits that TMX's efforts brought to the client:
- Designed a semi-automated distribution center using a combination of VNA and selective racking for reserve storage, an A4 station with 30,000 tote locations GTP system for all split case and smaller full case picking, 6 x decant stations, automatic carton erectors and induct, fully integrated full case pick module, dedicated small order / e-commerce packing stations and 11 sortation lanes.
- Established the optimum network strategy with a 2031 design year (28,000,000 units – throughput). Additional volume post 2026 to be re-directed through a new facility in Victoria, Australia.
- TMX negotiated a significant savings (AUD$9.2m) from the succuss owners first offer in the highly competitive stage 2 RFT process to the final agreed offer.
- In addition to the incentive, TMX included AUD$3.6m of provisional sums into the base building definition.
- Sourced a future property solution within the desired 10km (6.2mi) radius of existing facility so key staff were retained.
- Project managed the delivery of the facility on time and to budget.