Key challenges
A major Thai supermarket chain operates an extensive offline store network across various formats. Significant projected growth in their online presence meant that the existing conventional in-store fulfillment system will be inadequate to support the company's omni-channel strategy.
Our approach
An in-depth analysis of the existing supply chain costs, service levels, order profiles, performance metrics, and capacity limitations were initially conducted to map out next steps.
The clients extracted their envisioned future proposition with the aim of establishing e-grocery market leadership, where TMX then carried out a number of steps to deliver a successful plan:
- Evaluation of various fulfilment concepts which encompassed central fulfilment, micro-fulfilment, dark stores and in-store fulfilment. This evaluation also included a comprehensive analysis of the feasibility and desirability of automation.
- Our team modeled the costs associated with upstream, mid-mile, fulfillment, and last-mile processes, factoring in qualitative considerations and risk factors. This analysis informed the development of the future fulfillment network, with our multi-nodal center of gravity tool assisting in the identification of optimal locations.
- Throughout the process, we have also identified the enabling capabilities required and developed high level transition plan.
The results
TMX assisted the client to design a multi-dimensional fulfilment network that plays to the full strength of each fulfilment option.
The solution is an orchestration of cutting-edge fulfillment technology, capitalizing on the extensive scale and the pre-existing store network to minimize potential risks.
Additionally, TMX put forward an Operational Excellence program to bolster current operations, extending the capacity of the client while we enhance efficiency and capacity for future needs.