A predictive simulation supports network- and site validation for our client active in the FMCG industry.

Project in numbers

110K
Inbound pallets per month.
42
Trucks per hour during peaks.
9,700
e-commerce cases handled per typical day.

Challenge:

Our client is operating various manufacturing plants and warehouses in the same region. Based on expected growth our client is intending to redesign its finished goods distribution network to consolidate multiple existing distribution centres into one single centre. This while coping with the logistic market cost inflation. Royal HaskoningDHV was asked to validate and influence the current design to further optimize the clients’ flow in its network design through a predictive simulation model.

Solution:

The Royal HaskoningDHV team guided our clients’ stakeholders through a step-by-step process of building the simulation model and predicting the future design performance. The model included on-site traffic as well as the operations within the distribution centre as case picking, automated storage and retrieval (ASRS system), customization, e-commerce integration, storage and internal logistics (including monorail). Scenarios where run to evaluate the feasibility of volume projections, planning strategies and network-and site designs.

Results:

The analysis with the model showed that there is sufficient capacity to handle the expected volumes with the existing design, however due to the complexity of the intended planning the expected bottlenecks were high.

The main bottlenecks were found in internal logistics, leading to a low service of trucks level during peak operations.

The results of the model helped the client to pursue an alternative network and site design, in order to mitigate operational risks once the facility is built.

Having a simulation model of a complete distribution centre offers the possibility for the client to re-use the existing model to be able to quickly validate alternative designs.