Warehouse (MG) Demobilization

• [SITUATION]:
The Belo Horizonte warehouse operation was underperforming both logistically and financially, with critical indicators deteriorating:
➢ Logistics cost exceeding 5% of revenue.
➢ OTIF (On-Time In-Full) rate below 85%.
➢ Operational productivity below 100 boxes per hour.
Given this scenario, the board concluded that incremental improvements - such as cross-docking implementation - would not be sufficient. A comprehensive demobilization plan was required to reduce logistics costs, improve efficiency, and exit the facility without disrupting store supply.

• [TASK]:
I was assigned to lead the technical and commercial aspects of the demobilization plan.
The objectives were to:
➢ Ensure uninterrupted store supply during the transition.
➢ Complete the full warehouse closure within a 3-month timeframe.
➢ Negotiate the early termination of the lease agreement to avoid contractual penalties.

• [ACTION]:
➢ Designed a phased demobilization plan with a clear timeline, roles, and dependencies across functions.
➢ Led cross-functional meetings with logistics, commercial, finance, procurement, and legal teams to assess risks and define mitigation measures.
➢ Conducted direct negotiations with the warehouse owner to waive the contractual penalty by proposing an alternative arrangement: transferring part of the lease responsibilities to another tenant - a logistics provider already operating within the same facility.
➢ Structured the agreement enabling this provider to expand its occupied area and assume ownership of the cold chamber assets, which were transferred as part of the negotiation.
➢ Coordinated contract terminations, inventory reconciliation, and the relocation of equipment, pallets, and remaining stock to other Distribution Centers in the network.
➢ Oversaw the continuity plan from the Ribeirão Preto Distribution Center to guarantee store supply throughout the transition.

• [RESULT]:
➢ Warehouse demobilization successfully completed within the 3-month deadline.
➢ Lease termination negotiated with no contractual penalty, preserving financial targets.
➢ Transition executed smoothly, with no disruption to store supply.
➢ Logistics costs significantly reduced following the consolidation of operations.
➢ The project strengthened the logistics team’s credibility with senior management, demonstrating their ability to execute complex negotiations and strategic transitions under tight deadlines.