Key challenges
Fragmented Network: Fragmented Victorian DC network with multiple DCs inherited from the consolidation of acquired businesses.
Capacity Constraints: Existing facilities at capacity, limiting growth opportunities.
Suboptimal Processes: Suboptimal business processes due to aged IT systems and legacy ways of working that couldn't scale to support increasing volume.
Our approach
Following the successful completion of a significant network strategy, Bapcor enlisted TMX to spearhead the design and procurement of a new 50,000sqm (538,195sq ft) DC in Melbourne, aiming to consolidate multiple existing facilities across metropolitan Melbourne.
Here is what TMX delivered for our client:
- Comprehensive project management by populating a detailed statement of requirements, approached the market at large, shortlisted responses, and negotiated terms with the preferred developer.
- Procured and developed a new, fully optimized distribution center designed to be best in class.
- Designed, developed, and delivered end-to-end business processes to enable multiple Business Units.
- Specified and procured all major components, including WMS, automation systems, MHE, and racking.
- Led and coordinated the program PMO, ensuring all stakeholders were briefed and engaged throughout the process.
The results
- Successfully secured the new Melbourne DC at a competitive "effective" rental level.
- Achieved practical completion of the facility in 2020, on time and within budget, with minimal disruptions despite COVID-specific delays.
- Implemented extensive integration of GTP automation technology, facilitating the processing of 4,200 order lines per hour.
- Executed a seamless transition that met full-service targets from day one, ensuring operational readiness.
- Rapidly increased DC operations to meet and sustain target performance levels.
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