Key challenges
A fast approaching lease expiry, in a tight leasing market creating significant time pressure, with exponential on going and future growth targets (volumes, stores, etc.) made it difficult to determine sizing of a future fulfillment center.
Adding to the challenges, Harris Farm also faced a spike in online fulfilment orders through the global pandemic, therefore requiring their current online fulfilment DC to be optimized. Due to the nature of industry, the facility required flexibility of building configuration to adapt frozen/chilled zones for future requirements.
The process involved determining the optimal future state from a people, processes, infrastructure, systems, and financial aspect. By collaborating with Harris Farm Markets, the most suitable MHE/automation vendors and solutions were identified and aligned with present and future business needs. This encompassed a comprehensive property procurement process, including detailed financial analyses, market insights, and negotiation of terms. A highly detailed technical design brief and architectural drawings were developed to integrate bespoke Harris Farm requirements into the base building definition. Coordinating the integration of technical documents into legal agreements ensured Harris Farm's protection throughout their lease.
TMX also managed the construction phase, overseeing building delivery and automation integration for the operational Go-Live. Project management included overseeing internal and external work stream leads, facilitating the start-up and successful launch of the operation.
This was a once in a generation opportunity to make a significant step change in our business operation. There was no room for errors so having the end-to-end expertise from TMX was invaluable.
The results
TMX quantified and recommended an appropriate automation solution with a carton sortation system, providing Harris Farm Markets with the highest service level and financially viable outcome, with the greatest degree of flexibility. The solution created significant rental savings (AUD$3.4million) between the first and final offer during the RFT process.
Additionally, the base building definition included over AUD$1.1 million in provisional sums, reducing Harris Farm Markets set up costs (allowing full utilization of incentive), lessee obligations throughout tenure and future make good costs.
TMX also managed the legal and approval process in record time to avoid the risk of rising property and construction costs between the execution of non-binding HOA and legally enforceable documentation (AFL & lease), whilst also ensuring a smooth transition to “go live” within a tight timeframe.