E-Com Logistics Fulfilment Strategy

Specialist Fresh Produce Retailer

Background & Brief

The client is a leading producer and distributor of organic food boxes for delivery direct to the consumer; a very successful business with continued growth which faced the challenge of 40% growth during the Covid pandemic. This growth led the business to urgently reassess its future supply chain and logistics network. SCALA were engaged to undertake a logistics network review and support the client in formulating a supply chain and logistics strategy to meet updated growth projections through to 2026 and beyond.

Project Approach

  • Gain understanding of current business and revised growth projections
  • Visit existing packing operations and understand all processes from receipt of raw materials, through grading, storage, packing, and distribution to regional hubs for onward distribution to the consumer.
  • Data collections and analysis
  • Detailed evaluation of network, transport, handling and warehousing.
  • Logistics modelling to determine optimum number and location of packing operations.
  • Logistics modelling to assess optimal location of hubs
  • Review automation opportunities and design optimum layout of green field site and development opportunities of existing sites.
  • Development of fully costed model for three scenarios
  • Produce detailed conclusions and recommendations, including business benefit case, risk and cost of change and environmental assessment.
  • Benefits & Results

    Detailed Findings and Conclusions were discussed with the Company’s UK Board containing clear recommendations for the development of a second packing operation enabling future growth and providing the business with reduced risk and additional supply chain resilience. The proposed option required the least capital investment, little people impact and the lowest cost of change. The recommendations also included a change to automate packing processes and improve internal layout designs.

    Final Outcome

    All the recommendations are in the process of being fully implemented.
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