Conversion Strategies in industrial logistics

ROD Industrial Logistics joins ROD Corporate, ROD Private Equity, ROD Retail, and ROD Chains to form a wavelength on getting the most desirable judgment on a profitable conversion.

Logistics is continuously evolving, the supply chain policies and distribution methodologies are growing and improving to generate more added value to the entire process. losing sight of this fact can have a tremendous impact on the ever-growing process to be established, if the company is to survive.

A traditional warehouse is often transformed into a distribution center or even a retail chain platform, logistics actors looking to reduce capital costs, and streamline warehousing and delivery flows are prone to stay competitive and achieve the best performance.

Such instances have to be taken seriously, through insightful planning, and rigorous management, different scenarios can be identified for future repurposing.

Supply Chain cross-functional specialist

Rodschinson Industrial Logistics’s team has a long track record of repurposing logistics platforms to anticipate and embrace the new trends, and further the growth performance to the next level.

The team follows a methodical approach that combines a relevant and updated understanding of the supply chain as a whole value chain, market economic insights, and new strategic policies to refine future scenarios, and recommend the optimal transformation for its client assets.

To this end, from the earliest stages of building a logistics project, Rodschinson Investment emphasizes to construct flexible strategies to be able to conduct smooth transformations and adapt to the market.

Some examples of successful conversion strategies in adverse situations include

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Manufacturing Business Unit

Following a critical increase in storage costs, due to the spare parts’ high obsolescence rate, and inventory low turnover, the storage space was repurposed to be a picking-kitting area.

the company has gained in terms of added value operations and improved its economy of scale by outsourcing inventory management to an external distribution center.

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Due to a low density in terms of a catchment area, a cross-dock has seen its revenue decreasing drastically.

To take advantage of the transport shortage, the cross-dock has been turned into a carrier, the inventory space served as a storage area for spare parts, and the business model has augmented its working capital.

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Logistics Hub

To increase the usability and the ROI due to low demand and oversized logistics platform, the business model has been repurposed to serve as a 3rd and 4th party operator.

Providing tailored services to several customers, the company has gained the best occupancy rate, and improved its cash flow.

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