M3 boosts warehouse capacity 30% with Prological’s 3D redesign

M3 has consolidated its Sydney warehouse operations, increasing capacity by over 30% by combining three facilities into one with space optimisation strategies from supply chain consultancy Prological.

The logistics provider, which specialises in the home appliance sector, implemented the project to reduce operational complexity and eliminate the costs associated with transferring products between warehouses. By moving operations into a single, larger facility in Blacktown, the company has concentrated its resources and streamlined its processes.

M3, founded in 2003 by Mal Stanton, operates as a third-party logistics specialist for the home appliance industry. Its clients include Australian brands such as Rheem, Weber and Bosch. The shift to a consolidated warehouse in Blacktown followed a comprehensive assessment and redesign led by Prological, which provided the guidance and data analytics for the transformation.

Mal Stanton, Owner of M3, described the initial reaction to the proposal and its eventual outcome:

"The decision to consolidate our warehousing has transformed our operations, dramatically reduced our cost base while improving our service levels. When Prological first suggested we could fit all three warehouses into one, I thought it wouldn't be possible," says Mal Stanton, Owner of M3. "But looking into the warehouse now, not only is everything in here, but we still have some spare capacity. Their methodical approach identified improvements we couldn't see ourselves and delivered results that have strengthened our competitive position in the market."

Prior to the project, M3 operated three Blacktown warehouses: two at roughly 10,000 square metres each, and a third at 40,000 square metres. According to Prological's maturity assessment, the network had grown organically, resulting in inefficient use of space and internal transfer requirements that complicated operations and increased costs.

Prological's methodology was based around a shift from traditional square metre thinking to a three-dimensional (3D), cubic approach to space planning. This allowed for a more thorough utilisation of each warehouse's vertical space, leading to the significant increase in effective capacity.

Peter Jones, Managing Director at Prological, highlighted the broader implications for the logistics sector:

"This project demonstrates how new thinking and an outside perspective can deliver transformative results for already sophisticated logistics providers like M3," said Peter Jones, Managing Director at Prological. "By consolidating operations and optimising space utilisation, we've helped M3 create both immediate operational benefits and a platform for sustainable growth without expanding their footprint."

With the entire operation now consolidated, M3 no longer needs to shift stock between sites for dispatch, which has simplified supervisory structures and helped to balance service quality and cost-effectiveness for clients.

Jones further elaborated on Prological's methodology:

"Rather than addressing the symptom – 'not enough space' – our approach focused on identifying and resolving root causes," said Peter Jones. "By targeting the fundamental issues, we were able to address multiple downstream challenges simultaneously, creating a roadmap that would transform M3's operations."

The redesign has also facilitated the reduction of double-handling and operational duplication. These improvements have made M3's operations more resilient, and, according to the company, are part of a broader strategy to maintain competitiveness within Australia's home appliance logistics sector.

Following the consolidation project, M3 has retained Prological for ongoing consultancy and additional improvement initiatives, suggesting an ongoing corporate focus on continuous operational development.

The case illustrates how logistics providers can enhance efficiency and capacity through targeted transformation strategies, leveraging external expertise without the need for larger premises or new site acquisitions.