Implement DC Concept of the Future & Select and Install a Tier-One WMS

Company Information

Large Cosmetics Company is a World leader in their industry. Senior management is in the process of reinventing the company. Market in the US has changed significantly and has required a change in the North American network. Organize a prototype, design, and then implementation project that will support future global initiatives because international growth is significant

Business Problem

• Need to re-establish itself as the channel “owner” for cosmetics
• Design a facility that takes Client-A to the next level of quality, productivity and response
• Free-up cash for use in other areas of the business
  
  

TPG Challenge

• Major investment in distribution has not occurred in over 15 years.
• A strong logistics team has made the most of what they have to work with, and achieving improved productivity required a drastic change including new automation.
• A new facility has to support a wide range of products and a number of different fulfillment models
• Overcome internal biases to maintain status-quo, particularly regarding technology/IT paradigms
• Fit the project into a dynamic organization moving in many directions including ERP, international DC openings, organizational right-sizing, etc.
• Also design a retro-fit for an existing US DC to support the new operating principles and best practices
  
  
  

Results

• Designed a 600K SF facility to support 50% of the US market through the design year of 2018
• Worked with Client-A’s management team to develop the business case for this $160MM program (22% IRR)
• Projected to return steady state in excess of $60MM to the business
• Leverage automation to achieve significant productivity improvements (35 – 40%)
• Considerable improvement in merchandise control functions
• Dramatically reduce merchandise “touches” (from approx. 10 -15 to 2 -4); reduce set-up activity by 80%
• Selected Manhattan’s WMOS package to support the new design; lead the Client & MANH team through the WMS design process – now in implementation