Challenge
Multi billion company growing year over year 10% plus decided to improve its warehouse network and build-out cross-dock Distribution Center in the Central Europe. The DC was supposed to increase its weekly capacity from 5.5 mln units to 9 millions units weekly. The main project limitation was design fit within available building layout and workforce availability in the region.
Actions
To address its capacity challenges, the company embarked on an ambitious project to rebuild existing 85,000 square meters Distribution Center within already existing location. The key actions undertaken by our team included: Strategic Planning – comprehensive analysis of expected product flows was conducted to ensure new DC design and process would meet targeted criteria within the available building layout. This involved analyses of order profiles, service level targets, and current company processes. Equipment Selection – The facility was equipped with MHE tailored to the process and at the same time available within targeted project budget. The DC equipment was extended with automatic sorting machines, palletizing robots, and additional conveyour system linking sorting and shipping areas. Project Management – Our expert managed the rebuild process on-site in order to control execution of plans and at the same time conduct team building and training. Delivery of this project required constant stakeholders management across Client’s Supply Chain, Operations, and Commercial functions.
Results
The project was completed on time and within the targeted budget. The total weekly building capacity increased to 9.5 million units weekly. In order to fully utilize installed equipment capabilities 2nd night shift started operation and additional 700 associates were hired within first 6 months after project completion. The facility was ready to take over inbound deliveries from customer facing Fulfillment Centers in the region which increased their capacity by around 6% at the peak period. DC went through its first year of operation with Overall Equipment Efficiency at the level of 94% and keeping the score of zero accidents. This success story underscores the strategic value of investing in customized logistics infrastructure to support business growth, operational efficiency, and demonstrate how careful planning, tailored solutions, and efficient project management can lead to successful outcomes well within budgetary constraints.order was fulfilled in November. The total weekly capacity of opened building was estimated at 1.2 million orders weekly with full-staff working on 22/7 schedule. Before the Christmass peak time 800 people were employed and fully trained. The facility was ready to take in following 140 employees in case additional processing power would be needed. Existence of this FC within Client’s network enabled business growth and decrease in customer delivery time by 1.2 days versus previously available fulfillment possibilities. FC went through its first peak time without missing a single day of operation and keeping the score of zero accidents within first 60 days despite working on non-standard equipment, with completely new staff, and without previously set-up processes.
Short summary
A European e-commerce retailer improved its warehouse network by extending a cross-dock Distribution Center, and increasing its weekly building capacity from 5.5 to 9 million units. Strategic planning, equipment selection, and project management were key factors in achieving success within budget. Client met their goal and increased customer facing Fulfillment Centers capacity by 6%.