Warehousing and Distribution Optimization for FMCG Players in Saudi Arabia

The client was a national FMCG supplier seeking to redesign its warehousing and distribution model to meet accelerating demand from modern trade and e-commerce channels. Their existing structure was outdated, fragmented, and no longer aligned with growth objectives.

We developed a consolidated warehousing and distribution strategy optimizing facility placement, layout design, picking flows, and routing plans. The solution centralised inventory, simplified replenishment routines, and improved distribution efficiency.

• Assessed warehouse capacity, layout limitations, and picking flow bottlenecks.
• Evaluated distribution routes and delivery frequencies across customer clusters.
• Designed optimized warehouse layouts and slotting strategies.
• Developed a new distribution model integrating cross-docking and route optimization.
• Provided training and performance tracking frameworks for ongoing improvement.

We recommended consolidating smaller warehouses into larger hubs, standardizing picking routines, and improving route planning using optimization tools. Additional recommendations included slotting strategies for high-volume SKUs and centralized inventory planning across all sites.

Distribution costs reduced by 19%, picking accuracy improved by 25%, and delivery speed increased across major cities. The consolidated model created a scalable foundation for future e-commerce expansion.