MLS Uses SNS Expertise To Optimize Its Warehouse Network Model In KSA

KSA, October 2018 – SNS, the leading provider of supply chain consultancies and solutions in the Gulf and Middle-East, is proud to announce it has completed a network design study for Mosanada Logistics Services (MLS), one of the largest 3PL providers in the Kingdom of Saudi Arabia.
MLS was established in 2010 based on several decades of solid experience the group had obtained in the importation, storage and distribution of both dry and chilled/frozen products throughout Saudi Arabia.

MLS currently operates 2 warehouses in the western region: one in Jeddah and one in Khumra. The warehouse in Jeddah is located within an area that has been deemed as residential prompting MLS to look for a new location to serve their customers. As the group owns a large plot of land in the new King Abdallah Economic City (KAEC), the choice of the new location seemed logical. However, the new land would be at least an hour and a half away from Jeddah, potentially impacting MLS service levels and thus their customers’ satisfaction.

SNS consultants were called in to analyze the impact of moving the new main warehouse to the KAEC area as well as propose a model that would still allow MLS to serve their customers within the expected time windows and deadlines. SNS, and with the support of MLS Logistics and Financial teams, collected various data relating to inventory within the network, daily orders and daily transport requirements.

The collected data was used to compile a baseline model based on today’s operations as well as benchmark 2 new models: a central warehouse with a branch warehouse close to Jeddah as well as a central warehouse with a cross-dock facility.

The two  models were compared not only considering tangible costs and the impact on transport as it compares to today’s model but also considering intangible factors such as the operation of a cross-dock warehouse that may prove complex or the difference between retaining 1 week or 2 week stocks in the branch model.

“SNS’ analysis was quite thorough and gave us a really good perspective on our options” said Colin Durbin, General Manager of MLS. “Their understanding of warehousing operations and the particularities of our business was critical to having the consultancy results adopted by our operations and finance teams.”
“We are pleased to have been able to provide MLS with the answers they were looking for and support them in this critical remodeling of their warehousing network” said Wael Mabsout, Senior Manager at SNS “We certainly look forward to further collaborations with MLS team.”