Case Study with FMCG Manufacturer & Distributor

Client Overview

The client is a leading manufacturer and distributor of dairy products, supplying all the major supermarkets and wholesalers with a combination of branded and private label products from its warehouse campus in the South West, UK.

Project Objectives

Recent years of sustained volume growth had exceeded the warehouse campus’ storage and processing capacity. While the business implemented several tactical measures to unlock additional capacity, projected future growth required a comprehensive strategic review to deliver a significant increase in both storage and throughput capacity.

• Assess opportunities to expand storage within the existing infrastructure.
• Develop new warehouse layouts for each site across the campus, including a detailed transition plan outlining project execution and the anticipated impact on client accounts.

Project Approach

• Conducted on-site visits to review warehouse processes, assess current capacity and identify potential bottlenecks.
• Analysed historical system data to establish baseline flows and translate growth projections into future operational requirements for each client account.
• Assessed capital expenditure and operational impacts across multiple options, including alternative racking configurations and potential outsourcing or transport solutions.
• Developed an end-to-end concept design supported by CAD drawings to illustrate the proposed operating layout.
• Collaborated with the client’s project team to prepare a transition plan and business case for board approval.

Project Results

• A concept solution was developed to extend the logistics campus’s lifespan by five years, deferring the need for significant investment in new chilled warehouse infrastructure.
• The solution recommended rebalancing building capacities by reallocating client accounts across facilities, enabling the in-housing of previously outsourced operations to deliver immediate cost savings.
• The proposed racking design aligned with organisational priorities to minimise capital expenditure and maintain a largely manual operation, incorporating 2D pallet shuttles for intake and despatch buffers, as well as deep storage for high-throughput products.
• Collaborated closely with the business to ensure broad stakeholder engagement through consultation and inclusion in decision-making.