Key challenges
In navigating their supply chain complexities, the client encountered a spectrum of challenges, including:
- Significant day-to-day operating expenses and the need for a bespoke, fully automated high bay.
- Varying lease expiry dates across the existing distribution center network.
- Limited options among owners willing to accommodate the scale of automation required.
- Necessity for confidentiality and a carefully managed communication strategy.
- Development of a contract interface bridging the gap between the landlord and automation installer.
Our approach
TMX actively addressed the client's challenges through a comprehensive engagement, providing solutions across various aspects:
- Development of detailed technical design documentation and architectural plans.
- Property procurement facilitated through a competitive developer tender and selection process.
- Skillful negotiation of Agreement for Lease and Lease agreements.
- Project management oversight, inclusive of the seamless integration of automation, for the successful delivery of the facility.
Compared to a manual warehouse, these new automated warehouses will be able to handle twice the amount of volume of goods on half the footprint. It's game changing.
— Matt Swindells, Chief Operating Officer, Coles Group
The results
- Successfully reduced the owner's initial offer.
- Implemented value engineering in the design brief and concurrently conducted the property procurement process in NSW and QLD, creating additional negotiating leverage.
- Successfully negotiated down fixed annual rent review structures from 3% to 2.5%.
- Efficiently negotiated and finalized the Agreement for Lease within a tight 4-week timeframe to meet Coles' critical date.
- Sourced and secured a facility for Coles that aligned precisely with their specifications and desired location.
The world moves fast. Stay ahead.
Subscribe to our newsletter for business transformation news delivered straight to your inbox.
Thank you!