Parametric modelling enabled a retail distributor to explore more than 20 investment scenarios and make a decision on a new site for a cold store in less than a month.
Our client is a logistics provider in Russia. It needed to come up with a cold storage solution for one of its clients, a retail distributor of fresh fruit and vegetables. Most of these goods are imported and arrive in the country via a port where, typically, they need to be stored. Our client wanted to offer a cold containerised solution for these products, whereas the retailer’s preference was for a cold storage facility option. Our business case team was brought in to check which would be the most feasible.
Parametric model enables quick assessment of many options
The retail distributor had four possible sites near the port where a cold storage facility could be constructed. The facility needed to provide various thermal zones, from ambient to refrigerated to frozen, so our assessment included identification of the optimal distribution of these zones.
There was a significant time pressure and many scenarios to be assessed. We designed a parametric solution incorporating all the elements of the scenarios including warehouse size, thermal zones, product volumes and zoning allocations. With our parametric model, we were able to quickly assess all the options and identify the storage area required to handle the expected volume of goods.
It was clear none of the sites under consideration was large enough to provide the necessary storage space and that a cold storage facility was not a feasible solution. However, the containerised option did meet the requirements. With this information, our client had the clarity and insight needed to develop a sound business case for their containerised solution