New Warehouse Business Case

To assess the viability of adding additional locations to support an expanded interstate network, a comprehensive operational and financial model was built to perform a level playing field evaluation.

The Background

The client a leading regional 3rd Party Freight and Logistics service provider had identified an opportunity to expand its network and incorporate additional major city locations. To support the internal decision making process, a need for an independent financial assessment of the location options was identified. Due to Siecap’s specific expertise in this area the client requested us to develop a financial model that would stress test a range of cashflow projections.

How the Siecap team helped

Key model service value drivers assessed to understand market needs, customer service requirements and associated growth overlays.

Assessment of the financial and operational conditions relevant to the nature of the business of the client.

Incorporated capital expenditures, lease incentives and alternative time based factors that would vary by alternative could impact the proposed warehouse operational ramp up scenarios.

Developed a revenue based financial model to provide guidance on alternative landlord incentive models.

Built a financial model that allowed for future use and incorporated a comparative assessment dashboard.

The Results

Comprehensive evaluation model constructed that incorporated multi factor and side by side option evaluations was provided to the clientele

Review and calibration of a number of underpinning business case assumptions

10-year cashflow presented that confirmed the best fit property option

Positive revenue model for the business case to add additional footprint locations confirmed

Our Clients

We have delivered results for distinguished businesses and projects in Australia and abroad.