Estee Lauder U.K. called upon The Logistics Business when they decided to expand their U.K. distribution operation and replace a number of outside storage locations with a central distribution facility.
The Logistics Business used iFlow, our own in-house interactive modelling and analysis tool, to examine the available throughput data, undertake Pareto analysis for each of the 13 different brands and apply a variety of what-if scenarios to establish future requirements. iFlow provided the ability to examine the implications of different growth patterns in each brand, varying stock cover, order lines, cube, etc.
We then used this information to calculate the operational requirements of the proposed new facility and create a number of warehouse design options, ranging from manual to semi-automated solutions. Each was presented to the client, together with a cost/benefits analysis.
The Estee Lauder UK distribution network stores and distributes many hundreds of product lines and samples covering many different brands. Growth in the business had resulted in operations becoming spread over several sites and it was decided to bring these together into a single, new DC. This development needed specialist support, and hence The Logistics Business was appointed to assist with the planning and design of the building, materials handling equipment and operational processes. The programme of work was to examine different options and to provide a cost-benefits analysis in sufficient detail for the U.K. management team to submit fully costed proposals to the Estee Lauder parent company in the U.S.A.