Supply chain modelling using world leading software

A manufacturer had decided to centralise his warehouse operations to a new National Distribution Centre in the Midlands. A space had been allocated for the new building on an existing factory site and a design and build contractor had been appointed. We were asked to develop a project plan to ensure that the new warehouse started operations successfully and on time.

The first step was to establish a project team that contained all the key managers and the director that had overall responsibility for the move. We then conducted a brainstorming session to identify all the activities that needed to take place for a successful implementation. A detailed project plan containing over 400 activities was set up using Microsoft Project. The duration of each activity was estimated and the relationships between them were defined. Team members were given a list of their activities with required dates.

Weekly project meetings were held to discuss progress and identify critical areas. The project plan was updated and adjusted to reflect the changed circumstances as the project progressed. Key decision points were identified to senior management, so that delays to the project could be avoided.

Some workstreams, such as Information Technology, had to be closely monitored. New systems were prototyped to judge whether they were appropriate for the new operation, and robust enough to be implemented without affecting customer service. A virtual warehouse was created and all the warehouse management functions were systematically tested. A compromise was made between the level of information technology desired in the warehouse and the need to ensure that the implementation did not lead to an interruption in customer service.

The new warehouse started operations one month earlier than originally envisaged, with no discernible adverse impact on customer service. Training was given on project management tools and techniques, which the client has applied to other parts of their business.