Client: CPG
Transforming Distribution with Automation
Business Challenge
As the company looked to the future, its distribution network lacked the scalability needed to support long-term growth. Managing multiple distribution centers across different regions created inefficiencies, and leadership sought a more streamlined, high-performance network that could consolidate operations without excessive capital investment.
At the same time, rising demand and a projected 17.5% increase in inventory threatened to overwhelm existing facilities. The shift toward e-commerce and direct-to-consumer channels further strained capacity, making it clear that the current infrastructure could not sustain future growth.
While leadership recognized the need for modernization, they lacked a clear roadmap for integrating automation in a way that balanced flexibility, cost-efficiency, and operational agility while creating additional capacity. Miebach was engaged to design a Distribution Center of the Future – one that would drive efficiency, scalability, and long-term success.
Solution Delivered
The new facility design optimized space, integrating multi-deep shuttle systems and AS/RS for higher storage density and faster throughput. Automation was at the core of the transformation: AGVs replaced forklifts, cutting congestion and improving safety. AMR-supported case picking accelerated fulfillment, while an automated gantry layer-picking system reduced manual handling.
The project also included scalability planning, evaluating DC consolidation opportunities and a phased automation roadmap for future expansion. A detailed financial model ensured ROI-driven decision-making, and enhancements extended the life of existing facilities while reducing capital expenditures.
Results & Benefits
27% Smaller footprint with optimized designs, while still enabling growth |
27% |
$55M+ in cost savings over 10 years with Labor optimization and throughput costs |