Visy Infrastructure Automation

Visy Infrastructure Automation

Established in 2006 to consolidate the Visy Group’s supply chain network, Visy Logistics provides integrated logistics,freight and supply chain services to premium brands and manufacturers throughout Australia and overseas.

Challenge

With a national warehouse footprint of more than 130,000m2, plus over 50 warehouses globally, Visy Logistics requires a powerful and reliable IT platform to drive both its Transport Management Systems (TMS) and Warehouse Management Systems (WMS).
Faced with ageing IT infrastructure and increasing demands on its supply chain network, Visy Logistics needed to deploy a new, state-of-the-art automated warehousing system.
However, rather than spend from their capex budget, the business sought a finance solution that would preserve capital, minimise operating expenses over the effective life of the system, and deliver a productivity benefit from day one.

Solution

Having successfully implemented other finance solutions within the wider Visy Group, Northquest was tasked with devising a solution for Visy Logistics.
A 15-year Managed Service Agreement (MSA) with a variable output model was proposed to match the life of the new automated warehousing system. The as-a-service model was based on the system’s usage and levels of materials handled. Furthermore, an initial capitalised facility allowed Visy Logistics to pay on installation and preserve capital during the build phase of the system. This meant no payment was required until the new system had been deployed and the managed service solution commenced.

Outcome

The managed service solution combined with ANZ’s long-term funding arrangements, enabled the Visy Logistics division to retain capital for more prioritised areas of the business, while having the certainty of a long-term arrangement. The solution also gives Visy Logistics the flexibility to align materials handling with cash flow, helping to better manage system usage and budgeting.

“We worked closely with the Northquest and ANZ teams to design the right structure and pricing for our new automated warehouse system. Thanks to Northquest’s expertise in delivering an efficient as-a-service solution, we now have the capacity to grow our operations while still preserving our valuable capital.”
Mark Carroll, GM Finance, Visy Group

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