Strategic Network Planning and Distribution Center Design and Implementation for a Logistics Company
Context
With rapid business growth in China, the client was running out of distribution center (DC) capacity faster than anticipated.
They required a review network strategy based on updated forecast and government policy changes.
The client had the strong willingness to implement automation in new DC for both business units.
Objectives
Determine the capacity gap between existing operation and future need
New DC design to improve capacity, productivity and service levels
Support e-commerce events storage and operational requirements
What we delivered
Interview with business, operations, and planning teams to understand the plan, as well as bottleneck and pain points
Network options and modelling based on business analysis, industry market research, and benchmarking
Automation selection based on qualitative (stability, system integration complexity, etc.) and quantitative (ROI) analysis
Resource modelling with output including functional area space, equipment quantity, full-time equivalent quantity, and project budget
Detailed design with the layout and operational processes, including an implementation plan by phases
Automation implementation including bidding, system functionality and blueprint, SIT and UAT, etc.
Results
Confirmed China network strategy and future DC requirements
DC design meets future throughput and capacity requirements with increased productivity
Managed implementation and go-live of new DC on time and within budget