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Redesigning a distribution network strategy for a rapidly growing value retailer

A leading UK value retailer required a redesigned network strategy to support the rapid growth of the business. Hatmill were brought in to help the client redesign their distribution strategy by modelling various scenarios to develop a robust business case, prior to project managing the design and build of the chosen Distribution Centre.

The result: a new 500,000 sq. ft. DC capable of supporting the rapidly growing operation.

Executive Summary

Project Description:

When Hatmill engaged with the client, they were facing capacity issues at their primary DC, using two overflow warehouses as interim operational facilities and desperately needed a solution to support the rapid growth of the business for the next 5 years.

Project Challenges:

  • A growth rate of 50-70 additional stores per year required the distribution infrastructure to be scalable
  • The client had reached capacity at their existing site, and as a result productivity was below industry standard
  • In addition to their primary DC, the client was operating out of two additional sites whose leases were due to expire prior to the completion of the new DC
  • Whilst the new site was being built; the client needed a solution for their peak operation requirements during their highest volume period of the year

Hatmill’s Solution:

In order to help the client, achieve their supply chain goals we:

  • Modelled several potential solutions to the client’s capacity issues
  • Facilitated the consolidation of the two additional supporting operational sites into one 3PL solution
  • Project managed the design, build and fit-out of a 500,000 sq. ft. warehouse
  • Enabled the client to manage a peak relief operation out of the new warehouse whilst the fit-out was taking place
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