Business case, planning & implementation of a global distribution center

Business challenge and growth

Based on their current network, our customer was challenged with high estimated growth rates of >12% per year over the next years. The initial situation we found was that 75% of stock was stored in multiple external facilities, ensuring that service targets were achieved but at high costs and complexity.

Due to these factors, future state requirements for increased efficiency of the supply chain and logistics processes needed to be developed, ensuring the selection of the best fitting and sustainable solution for the logistics set up and sufficient capacity was enabled.

“Due to significant growth for the business, the current logistics set-up was at its limit. The challenge was to identify how and where to invest.”

Solution approach

The critical aspect of the project was the intensive and close cooperation between all project partners and stakeholders, whereby a common goal was defined and implemented. The key factors included:

  • Understanding and defining the needs for future distribution and growth
  • Considering all options for the required supply chain design
  • Determining the required warehouse capacity and space, with appropriate technology
  • Assessing all these option models and building the business case, considering all quantitative and qualitative drivers.

The integrative and holistic solution approach includes, among others, the following services:

Supply Chain Transformation
The starting point was an end-to-end supply chain assessment to identify the maturity profiling. SWOT analyses were used to identify the quick wins, the long and middle-term initiatives, and determine the ROI and road map to a best-in-class sustainable solution.

Network Design Study
The network is critical to ensure it is flexible, robust and can evolve with the needs of the business. A study was conducted to analyze and determine where to locate the distribution center in the proper structure of their distribution network. Additionally, an analysis of where are properties available that have minimal social impact due to their proximity was completed.

IT / WMS System
A suitable IT solution for warehouse management was identified and sourced, that would meet operational requirements and processes as well as the company's current and future IT strategy.

Warehouse Design
In the concept stage, proper processes and efficient material flows were developed in order to ensure the site logistics will meet the future needs. The business case also included investment analysis and financial modeling, as well as the subsequent selection of the right investor.

Digital Solutions
Using a digital twin of the distribution center, the strategy, design, and potential investments - including different business scenarios - were reviewed and analyzed. In addition, actions were verified and reconciled for the different scenarios.

Integrated Logistics and Construction
In order to ensure a coordinated planning and construction process, clear and definitive specifications were established as the basis for tendering and selection. Having the project and interface management handled byan unbiased advisor enabled optimal design of the overall system.

Implementation / Project Management
As the client's technical and business advocate, we not only ensured that the implementation was on time and on budget, but also that we enabled the agility to respond to change requests during the implementation.

Ramp up
Managing change ensures that the distribution center's defined performance steps are on target or exceed plan from the first "live" day.


“The results: High-cost savings & short payback period which support the growth strategy and increase the efficiency, optimize costs, improve customer service, as well as enable sustainability in the solutions.”

Further Information

Parker Hannifin - Remodelling the logistics supply chain

Experience Report 26 August 2021, Written by Laura V. Garcia, BizClik Media Group

Dirk Falkenreck, European DC Manager, Parker Hannifin shares how Miebach helped increase efficiency, improve customer service and create a 2025 vision.

Miebach study: Sustainability has arrived in supply chain management

Study 05 November 2020, Written by Thorsten Gensmer, Miebach Consulting

Even though the corona pandemic has pushed many future topics and plans into the background, companies are working on initiatives for greater sustainability. The results of the study suggest that a successful turnaround towards...

Germany, 02 June 2021
Levi Strauss & Co. builds new distribution center and focuses on sustainability

In order to keep pace with its ever-growing business within the European market, Levi Strauss & Co, with European headquarters in Brussels, is building a distribution center in Dorsten, Germany, that is aligned with strict sustainability guidelines, including the "cradle-to-cradle" approach. "This is the result of an aligned, and strongly integrated cooperation between the involved parties", stated Marc Meuleman, Managing Director Benelux for Miebach Consulting. "Understanding the customer's...