Case Study: Future-Ready Fulfillment

Optimizing Distribution for Growth

A leading multi-brand retailer consolidated its distribution into a 400,000-square-foot fulfillment center to streamline operations, but rising demand quickly exposed inefficiencies. The facility’s layout, designed for lower volumes, struggled with capacity constraints, outdated infrastructure, and manual-intensive processes.

Peak season storage hit 90% utilization, and a lack of automation led to excessive labor costs, slower fulfillment, and inaccurate order processing. To future-proof operations, the retailer engaged Miebach to develop a strategic design that would optimize material flow, enhance efficiency, and support long-term growth.

Miebach applied a structured, three-phase approach to reimagine the fulfillment center. First, a detailed operational analysis mapped material flow, storage utilization, and process inefficiencies. This assessment highlighted key bottlenecks, including an over-reliance on manual processing, inefficient sortation, and limited automation. The team established design assumptions aligned with projected inventory growth, throughput requirements, and peak season demands.

Next, Miebach developed and evaluated multiple conceptual solutions, each incorporating different levels of automation and facility reconfiguration. Technologies such as pouch sorters, tilt-tray sorters, automated putwalls, and robotic-assisted picking were assessed for cost-effectiveness and scalability. A quantitative and qualitative comparison helped identify the best-fit approach, balancing investment with long-term performance gains.

The final solution integrated a hybrid automation model, including automated putwalls, a redesigned mezzanine for active picking, and an upgraded outbound sorter to enhance throughput. Investment estimates (CapEx), operational cost projections (OpEx), and ROI calculations provided a clear financial roadmap. A phased implementation plan ensured seamless execution with minimal disruption to ongoing operations.

Additional gains included faster fulfillment, improved accuracy with near-zero sorting errors, and a scalable automation
model for future expansion. This strategic transformation positioned the retailer for sustained growth, efficiency, and improved customer service in a dynamic retail landscape.