• Our client, a BTS developer, aimed to construct a state-of-the-art multi-temperature Central Distribution Centre in Riyadh.
• To design an efficient distribution centre optimizing material, storage, and process flows while supporting property financial structuring.
• Review and optimize facility layout and fit-out, evaluate storage/racking options, enhance process flow, support property sale leaseback process.
• Achieved an optimized facility layout that improved overall efficiency; facilitated a successful sale leaseback transaction for the property.

In the competitive landscape of logistics and warehousing, our client, a prominent BTS developer, sought to construct a cutting-edge multi-temperature Central Distribution Centre in Riyadh. The goal was not only to enhance operational efficiency but also to ensure the facility was designed to support complex logistics functions and financial structuring through sale leaseback arrangements.

The primary challenge was to design a distribution centre that could handle diverse temperature requirements while optimizing material, storage, and process flows. This was essential to accommodate a variety of products efficiently within the same facility, demanding a highly strategic approach to layout design and internal fit-out. Moreover, the centre needed to be attractive for potential investors or lessees, necessitating a layout conducive to high operational efficiency and cost-effectiveness.

Additionally, the project demanded a facility that could support the sale leaseback process, thereby requiring a design that not only meets operational logistics but also aligns with attractive financial incentives for potential investors. This dual focus on operational and financial viability increased the complexity of the design and planning process.

Our consulting team approached the project with a comprehensive strategy that integrated architectural insights with operational logistics expertise. We began by conducting a detailed analysis of the existing material flow within typical multi-temperature distribution centres, using this data to inform the initial layout designs and internal configurations. Our methodology balanced operational efficiency with the strategic use of space to maximize property value for future sale leaseback opportunities.

To optimize the material flow within the facility, we reviewed and redesigned the layout to minimize movement and enhance the efficiency of operations. This involved the strategic placement of storage and racking solutions that supported a variety of temperature requirements while maintaining accessibility and ease of logistics operations. We then evaluated and recommended the best storage and racking options that would maximize space utilization and adapt to changing logistics needs.

In enhancing the facility’s process flow, we focused on integrating advanced technology solutions that could streamline operations and reduce manual handling. This included the implementation of automated storage and retrieval systems (ASRS) and the integration of an intelligent management system to oversee and optimize daily operations. These technologies were selected not only for their efficiency but also for their appeal to potential leaseback partners due to their long-term operational cost savings.

The redesigned facility layout significantly improved material, storage, and process flows, leading to enhanced operational efficiency and reduced operational costs. The strategic use of technology and space planning also made the facility highly attractive to potential investors, facilitating a successful sale leaseback transaction. This not only provided immediate financial returns for our client but also secured long-term operational viability for the facility.

The improvements also positioned the distribution centre as a benchmark for future projects in the region, showcasing the potential for integrating operational efficiency with financial planning in warehouse design.

The success of the Riyadh Central Distribution Centre project underscores the importance of strategic planning and integrated design in logistics facilities. By addressing both operational and financial aspects of warehouse design, our team delivered a facility that meets the high standards of efficiency and investment appeal. This project serves as a model for future developments, demonstrating that thoughtful design and strategic technology implementation can result in significant operational and financial benefits.

Here are five key takeaways that are important for organisations to consider:

1. Integrated Design Approach: Effective distribution centre design requires integrating architectural planning with operational logistics to enhance efficiency and optimize space use.
2. Strategic Technology Integration: Employing advanced technologies like Automated Storage and Retrieval Systems (ASRS) can significantly streamline operations, reduce manual handling, and appeal to potential investors due to long-term cost savings.
3. Financial Structuring Compatibility: Designing a facility with potential sale leaseback opportunities in mind ensures that the layout not only meets operational demands but also attracts financial investments.
4. Adaptability in Storage Solutions: Evaluating and implementing versatile storage and racking options that accommodate multiple temperature requirements maximizes space utilization and operational flexibility.
5. Operational and Investment Appeal: A well-designed distribution centre not only improves operational efficiency but also enhances the property’s marketability for future financial transactions, such as sale leasebacks.