Saudi Ghassanco Group, the distributor of IKEA products in the KSA, requested from ADI an evaluation whether by spinning off its in-house logistics operations into a separate corporate entity it would be possible to capture a relevant share of the growing 3PL logistics market in the KSA. In an initial step, ADI – in co-operation with Barloworld Logistics – was commissioned to do a feasibility study with a focus on the evaluation of existing capabilities and volumes already handled. As this study confirmed the feasibility, ADI was asked to derive a business plan which would position the new group’s division as a market leader in its segment.
The first step of preparing a business plan was to derive the target positioning of the new logistics company regarding its scope of services and the target market segment of customers. Due to the fact that the company can start its business with substantial volumes ADI applied a tailor-made combination of a market and SWOT analysis. This analysis could profit from ADI’s many years of presence and experience in the GCC, thus the ability of considering the specifics of the GCC and Saudi logistics market.
As part of the business plan, ADI derived the future logistics network which will be required, including warehouse and cross-dock facilities, transport structures, staff, and systems. Geared towards a phased implementation all involved planned operations costs and revenues were determined to establish the financial part of the business plan. In addition, the key work-streams for implementation had to be documented as guidelines and work-plans for operational readiness (for rapid implementation), transferring of existing logistics operations, as well as building the new company’s organisation, systems, and new facilities. Within weeks after finalising the business plan and the implementation guidelines, “FLOW Progressive Logistics” had been created, including the employment of staff and start of operations in warehousing and distribution. The new warehouses for FLOW have been designed by ADI and SSI Schaefer.
