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SCALA CASE STUDY

E-Com Fulfilment Centre Design

Major Grocery Discounter

Background & Brief

The client, an extremely successful Discount Retailer, engaged SCALA to provide an independent assessment of its e-com supply chain. The client currently outsources its e-com fulfilment centre operations to a third party but wanted to assess the options to utilise some of its existing estate and bring its e-com fulfilment centre operation in-house. The project required a detailed review of the client’s baseline data and growth projections through to 2035 with specific focus on providing concept warehouse designs and throughput capability for converting two of the client’s existing regional distribution centres into highly automated e-com fulfilment centres.

Project Approach

  • Gain understanding of current business and ecom growth projections
  • Provide baseline data review generating projected warehouse activity, handling and storage requirements.
  • Review and apply growth projections through to 2035.
  • Develop process maps for all activities.
  • Carry out technology evaluation to identify optimum automation to be used for the processes and throughput through to 2035.
  • Review the two existing facilities and produce concept designs for both warehouses optimising throughput and storage space.
  • Develop operating cost and capex cost models for each design and warehouse.
  • Produce detailed report containing conclusions and recommendations, including business benefit case, risk and cost of change.

    • Benefits & Results

    Detailed Findings were produced for the Company’s UK Board containing a clear recommendation for the development of one of the sites to meet the long-term growth forecasts . SCALA also provided concept design options to extend the use of both current sites that could provide a medium term solution or even long term if the full growth projections didn’t materialise.

    Final Outcome

    The client was delighted with the concept designs but has taken SCALA’s report recommendation to go back and review the business’s growth projections before progressing with a more detailed warehouse design.
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