Major Retailer Realizes 15% Savings in DC Network

June 9, 2022
Team 3TO

A major Canadian retailer needed to develop a comprehensive long-range distribution network plan. Supply Chain Architect was able to model the retailer's large network and identify key areas for savings.

Business Situation

The Canadian retailer operates over 700 locations across multiple provinces. Since the company has been growing by acquisition over the last 10 years, there were several distinct banners to consider, each with their own service and flow path requirements.

In addition, the retailer’s distribution network included over 35,000 SKUs, with some categories of SKUs requiring complex handling constraints. This included federally regulated items.

Solution & Results

3TO was asked to develop a comprehensive long range distribution network plan for the Canadian retailer. With Supply Chain Architect, we were able to build and solve the retailer's large model, which included the critical flow path requirements and complex handling constraints.

Supply Chain Architect's “resource" construct enables management of DC space utilization in both throughput and CF consumed. With cloud-enabled parallel solving, we were able to solve the large model quickly, providing a planned network for 2040 and 5-year increments in the interim. Furthermore, we identified over 15% savings over the incumbent network by consolidating facilities into larger, automated facilities.

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