A new distribution center managing the realization

Our client is a Dutch food retail organization with more than 500 stores nation-wide. Its current market share makes it one of the largest Dutch service supermarkets

Customer Anonymous
Segment Retail
A new distribution center <span> managing the realization </span>

Assignment

Our client has engaged WeY to provide a program manager for the realization of their new to-be-built distribution center

Jos, in his role as program manager, has committed to performing the following tasks:

  • Safeguarding the program's integrity and integrality.
  • Managing the stakeholders involved.
  • Coordination of the various workstreams, including workstream planning and budgeting.
  • Drafting and monitoring the overall project plan, including key milestones and dependencies.
  • Facilitating decision-making by the program owner and steering committee.
  • Reporting on program progress and status in the steering committee, escalating if necessary. 

Approach

In our opinion, three key aspects play a vital role in programs of this magnitude: structure, a correct financial outlook, and adequate involvement and support.

How did we ensure that these aspects were safeguarded? Here's how:

  • Building upon a partner's foundation, we introduced recurring check-ins, PMO meetings, and a steering committee. This ensured periodic decision-making and structural involvement, the latter creating both support (board of directors) and buy-in (all other stakeholders);
  • We have made significant improvements to the high-over (CAPEX) budget by breaking it down into more detailed workstream budgets. This simplified decision-making at the program level and allowed for continuous business case validation.

One of the biggest challenges we faced, was dealing with the impact of other major running projects - such as a recent large-scale merger - which affected resource availability. In such challenging situations, a program manager's best friends are structure, clear agreements, and transparent project planning. Moreover, it is essential to identify potential risks promptly and take appropriate measures to mitigate them without delay.

The handover to the Business Project Manager took place in December '23, with all metrics indicating 'on-track' status. We expect to have a well-designed and appealing distribution center handed over to our client by March '24.

Results

All key milestones were achieved on schedule, and at the time of handover, no significant risks were identified. Moreover, the current financial outlook is very positive, indicating a financial underrun on the program level.

The team's positive 'can-do attitude' has been instrumental in keeping the project on track despite various scope changes and expansions. In fact, improvements have been implemented alongside the original plan - batch-picking being a prime example.

The final result:

  • A new, well-designed distribution center, with a surface totaling 77.000m2.
  • Fully handed over, on-time.
  • With an expected financial underrun - up to 10%.