Optimising Distribution Centre

How to maximise value by optimising your distribution centre (Part 2)

Get Maximum Value out of Your Current Distribution Centre (Part 2)

In the first post of this two-part blog series, we discussed whether fulfilment capability could be impeding your business growth. As most businesses naturally want to maximise their existing facility’s value, this second post looks at optimising your current Distribution Centre.

There are a number of ways that businesses can leverage leading-edge technology and organisational advancements to optimise their current Distribution Centre (‘DC’). We recommend asking some key questions to help decide whether your DC can adequately support your current and future business growth:

Cost Factors

  • Will it cost more to address your existing DC’s issues than to develop a new facility?
  • What would associated costs be incurred to reconfigure your current facility?
  • How could those costs be balanced alongside possible fulfilment disruption?
  • Would an upgrade to your current facility reduce efficiencies as you operate under construction?

Location & Structure

  • Do you have the space for expansion?
  • Will you need horizontal and/or lateral space?
  • Are there any load-bearing walls or offices to work around?
  • If your property is land-locked, will that affect supply chain design or optimisation in future?

Materials Handling Equipment & Systems

  • Does the design of your current assets allow for physical expansion?
  • Are your current assets aligned for the orientation of your building?
  • Could you improve your capacity using different materials handling options?

The answers to these and other specific questions regarding your own facilities and business growth goals will guide you on whether you are best placed to upgrade your existing DC, or, what decisions you need to make regarding new capabilities.  In our experience, many companies achieve a short-term efficiency boost and business continuity from adapting their current facilities in tandem with planning ahead for a new facility.

There are additional incremental improvements that can expand the capabilities of an existing DC facility.  These can include installation of new equipment, which can later be shifted and utilised in a new facility, improving your DC’s current layout and putting in place more efficient handling processes and practices.

New World Business Solutions has successfully completed numerous DC optimisation engagements with companies spanning the automotive, retail, consumer packaged goods (CPG), healthcare and food manufacturing industries.

Supply chain and logistics management consultants are available at New World Business Solutions to provide you with expert assistance. Contact us today:

Phone: 02 9401 9152
Email: info@newworld.com.au

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