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Design of an Omnichannel Distribution Centre

Majid Al Futtaim Retail

A franchise agreement allowed Majid Al Futtaim Retail to introduce the first hypermarket model to the region in 1995. Today, Majid Al Futtaim owns 100% of the Carrefour franchise in 38 markets across the Middle East, Africa and Asia.

According to Global Powers of Retailing 2018 report by Deloitte, its turnover was 6501 US$M.

The Project

The client requested a study of its logistic operations, flows and volumes to adequate its infrastructures to its growth plan.

During the analysis phase, initial logistic operation, processes and IT map were reviewed. Existing infrastructures were evaluated, costs and KPIs analysis allowed a prioritized proposal of improvement initiatives.

The first design step consisted on defining theoretical optimum infrastructures for current operations, that allowed alignment of criteria and expectations. Then, we considered the impact of non-existing processes, like e-commerce and additional volumes to be managed to agree to the global needs, define required infrastructure and calculate return on investment.

The Results

The client inaugurated the largest Distribution Centre in the United Arab Emirates in April 2018:

  • 200.000 items storage with 7 different temperature zones from 0º to 25 º Celsius.
  • Capacity to handle 42 million cases of products annually and 100,000 orders per day, reducing energy consumption by 50%.
  • The design allows expansion to adapt to future growth.