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Case Study

Fortune 500 specialty retailer

620,000 s.f. regional distribution facility

Services

Supply Chain Consulting, Location Selection, Real Estate Acquisition, Business and Economic Incentives, Project and Development Services

Situation

  • Identify a regional distribution location to support future retail store expansion into the Western United States (currently serving region from Plainfield, IN).
  • Develop an integrated, multi-year strategic plan to lower “cost per case” and improve service time to retail stores.
  • Analyze project rewards/risks associated with lease vs. own, existing building vs. design-build development, and client-operated vs. third-party service providers.
  • Quantify cost differential between multiple locations across the West Coast (transportation, labor, taxes, incentives, operating expenses and real estate).

Results

  • Selected Goodyear, Arizona for productive, cost-effective labor force and Foreign Trade Zone over Southern California.
  • Minimized overall occupancy cost with a design-build development for purchase.
    • Avoided Arizona rent tax on lease.
    • Negotiated future expansion options to purchase land at discounted price.
  • Managed entire design procurement and construction process for an 8% savings.
  • Leveraged new development to negotiate high benefit per new employee with local government.
  • Activated Foreign Trade Zone to capture 75% reduction in real and personal property taxes in Arizona.

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