Background and challenge
Designing an efficient, agile and resilient supply chain network for major development projects requires careful planning and know-how. Our client, a private investor, asked us to assess the current and future logistics arrangements of a development project and provide recommendations for required upgrades and new facilities. The project objectives included the estimation of freight volumes expected to be transported to and from the under development property and the analysis of the road network capacity to handle additional truck movements generated by the operation of the property.
Approach and recommendations
Neollect implemented a staged approach including:
- determined the supply chain network;
- retrieved benchmarks for freight supply per person from expert interviews and related literature;
- calculated freight demand for key supply categories over a span of 15 years, including food and beverages, chemicals, and reverse logistics (eg waste and recycling) to satisfy the needs of the expected volume of guests, visitors and workforce;
- distributed freight load across the designated supply chain network;
- determined daily logistics traffic in PCUs per road segment and analysed the total demand with respect to the capacity of the road network;
- assessed the need of developing a central receiving hub and local warehouses to serve the property;
- developed a high-level master plan of the logistics facilities.
Design of the logistics network of a new, large-scale development
Impact
Our client endorsed our recommendations for the logistics network and facilities for the property development and will assign the management of the hub to a specialised 3PL provider. The hub requires space of 2.000 m2 and 7 ramps to operate efficiently. High capacity trucks will be used for transferring materials in longer distances to promote efficiency, while within the property lower capacity vehicles will be used for distribution, including electric ones. Logistics flows to the property will be unimpeded.
