Manufacturing and Warehouse Greenfield Site Relocation
Problem
A remote branch was the largest and most profitable among 12 nationwide locations. However, the existing facility was outdated and undersized, limiting operational efficiency and growth. A greenfield relocation was deemed the best solution, rather than redesigning or upgrading the existing site.
Scope and Deliverables
Stoke Consulting led the full planning and execution of the relocation, ensuring minimal disruption to business operations. The key deliverables included:
- Stock Optimisation Strategy: Analysed slow-moving and dead stock, reducing potential write-offs.
- Review and Establish Future-State Business Processes: Engaged stakeholders to develop new ways of working and optimise workflows.
- Workflow Optimisation: Achieved a 10% reduction in shopfloor labour costs through natural attrition in a 25-person workforce.
Outcomes
- Stock Optimisation: Reduced slow and dead stock write-off from $500K to only $40K.
- Space Optimisation: Created 25% more spare shelf space, reducing clutter and improving warehouse workflows.
- Operational Performance: Stock turnover doubled post-relocation.
ROI Assessment
Against program and project consultancy and management costs, the average ROI is estimated at 500% with the savings below identified:
ROI Area | Metric | Estimated Value |
Stock Optimisation | Reduced write-off from $500K to $40K | $460K saved |
Workflow Optimisation | 10% shopfloor labour cost reduction (natural attrition) | $150K+ annually |
Increased Stock Turnover | Stock turnover doubled post-relocation | $3M+ efficiency gains |
Risk Mitigation | Avoided warranty exposure | $250K+ in potential liability |