National distribution centre design and development

Summary

This project was to create a business case for a new National Distribution Centre (NDC) and select an Integrator for the internal logistics system.

Project Background

The client is a major retailer of general merchandise. They sell through department stores and the internet. Due to planned growth and limitations within their existing distribution system the client decided to expand their capability. The internal project team had undertaken some initial work in connection with establishing a new NDC but because of the size and importance of the project needed the injection of external expertise.
LCP Consulting were engaged to assess the current status and to put forward proposals to move the project forward. The client board agreed to the proposals and a plan was developed.

Approach

The work was broken down into four key phases:
• Develop a conceptual design of the proposed NDC
• Undertake a tendering phase
• Create and submit a business case
• To select the integrator who would implement the logistics system to operate within the new facility

It was important for the client that LCP consultants integrated with the existing client team working in their offices. A number of core consultants worked closely with the client team over a number of years with others supporting at different stages.

The concept design phase was lead by a small LCP team - developing and estimating the cost of the design and undertaking extensive data analysis and coaching of the client team. In subsequent phases LCP expertise was used to provide guidance and support to the client team. Data analysis continued throughout all phases of activity.

The concept design concluded that the proposed operation could meet the business requirements and that the project objectives were economically feasible.

The next phase comprised the creation of invitation to tender documents for a global WMS system and an NDC logistics system. LCP scoped both documents and were the principle contributors to the technical content of the NDC logistic system document and commercial sections for both documents.The submitted tenders were evaluated and a final business case developed. The board accepted the proposals and two implementation projects were initiated.

LCP Consulting was retained by the client to assist with a further phase of work entailing another level of requirements detailing and then a series of sessions with prospective system integrators before final selection.

Client Testimonials

The client continued to re engage LCP Consulting for each of the phases until an Integration partner was selected.

Success Factors

LCP Consulting team integrated quickly and effectively with client team and culture.
During the concept phase, the work was progressed at a faster pace than what the client had been used to.

Results and Benefits

The most critical phase of concept design was completed within a tight timescale with an innovative design meeting with the clients operational staff approval.

The selected Integrators final design closely resembled the conceptual design and the final costs were close to the original estimation.
The client is delighted with their implementation Integrator.