Argos Case Study Essay

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Argos Case Study

This same central facility, It was decided would also be developed as the primary point for the storage and dilutions of directly Imported (ODL) lines. The objective then was to determine how big the facility should be, what equipment, systems and operational procedures should be used and where It should be located. Supply Chain Networks The way in which Argos is developing its distribution operations is a good example of how supply chain networks grow within an organization. The new facility will extend the network by introducing new delivery channels but the result will be significant cost benefits.

This important point is that Argos have understood the complexity of their supply chain network and are managing it accordingly. Many organizations simply do not recognize the multiple supply chains within their business and consequently fail to manage the network to best effect. The Logistics Business approach We provided a full design and operational development team to work alongside the Argos project team. We used our computerized, interactive distribution centre design tool, I-flow, to model what the business might look like in five to seven years time, even a range of likely scenarios for sales growth and range expansion.

This provided us with the essential parameters for considering what options might best suit the future needs of the business. The preferred options, which included a high level of automation, were then brought together Into a specification of requirements and the project was put out to tender. The solution The new 60,000 mm facility Is under construction on a Greenfield site In the Midlands. Our consultants are working as part of a team comprising representatives from Argos, the MME supplier and the bulling contractor to manage the construction and ensure that equipment and systems and delivered, tested and commissioned to specification.

One of our consultants Is acting as “The Engineer” under the terms of the MFC contract. We are also working with the operations team to help develop the methods of working and processes that will be needed to integrate the new central facility with the rest of the Argos distribution network. Attention to detail and use of special modeling tools have ensured that the implications for a range of possible future scenarios were well understood before any design options were considered.