Key results

• 6 weeks
  Time to board-ready business case
  

• ~18 months
  Estimated payback period

• Projected multi-million EBITDA uplift
  Within 1–2 years

The challenge

A pharmaceutical services provider’s European warehouse network was operating with latent capacity, while parts of the system remained constrained in ways that static analysis could not fully explain.

With volumes expected to grow significantly, the business needed to understand whether its existing footprint could support future demand — and what structural changes might be required — without relying on assumptions or committing capital prematurely.

“We had a clear mandate from our client to understand the cost and service implications of reconfiguring its European network to increase capacity utilisation. The existing analysis was insufficient as the company was unable to digitally recreate warehouse setups in enough detail to assess future scenarios. To help meet the firm’s diligence requirements, we engaged Kallikor to build a model of its operations.”

James Moffatt
Director, Baringa

The approach

Baringa partnered with Kallikor to create a simulation-led experimentation environment, enabling different growth and consolidation scenarios to be tested before decisions were made.

Using Kallikor’s Warehouse DesignLab, the team built a detailed operational model of the client’s European warehousing operations. This captured storage, throughput, labour, and constraints across four temperature-controlled chambers.

A digital twin of the current system provided a baseline for exploring alternative futures.

This enabled the team to:

• Analyse current utilisation across storage and throughput

• Test the feasibility of consolidation based on combined volumes

• Model demand variability aligned to a three-year sales forecast

• Project storage and throughput volumes across four temperature channels

• Run 72 consolidation scenarios to compare structural options and their operational, financial, and service impacts

• Identify further optimisation opportunities, including improvements in throughput and required CAPEX investment

The impact

Using simulation-led analysis, Baringa developed a fully costed and deliverable business case within six weeks.

This provided a clear recommendation for reconfiguring the European network, including targeted CAPEX investment and a projected payback period of approximately 18 months.

The analysis indicated a projected multi-million-pound EBITDA uplift within 1–2 years, aligned with expected growth.

“Thanks to Kallikor’s technology and expertise, we were able to quickly move from first engagement to board-ready business case at unprecedented speed. The Warehouse DesignLab allowed us to complete this advisory and recommendation project in 6 weeks, which is half the time a project of this nature would normally take. Kallikor’s innovative digital twin technology has played a crucial role in shaping our recommendations. We’re looking forward to working with our client on further projects as part of their supply chain improvement strategy.”

James Moffatt
Director, Baringa

 

Looking ahead

“This engagement shows how simulation-led experimentation helps organisations unlock growth without flying blind. By testing how systems behave as demand scales, teams can align stakeholders and commit to decisions with confidence.”

Jonathan Barrett
Founder & CEO, Kallikor