Navigating Project Challenges in a R400 Million Pharmaceutical Warehouse Construction Project

The rapid expansion of the healthcare industry compelled a leading pharmaceutical company to enhance its product offerings. The unprecedented growth the company experienced resulted in it outgrowing its existing facilities, necessitating expansion. This paper focuses on the challenges faced with project budgeting, scheduling, resource allocation, and activity planning.

Strategic planning and preliminary warehouse design began in 2014 to determine whether redeveloping the existing facilities would be more beneficial than developing on a greenfield site to cater for the anticipated growth rate of 15% year on year. The decision-making process involved economic feasibility calculations as well as considerations relating to the company’s growth trajectory. The outcome of the study led to the redevelopment of their main warehousing facility despite initial space limitations.

This case study exemplifies how strategic planning, meticulous execution, and adaptive management are essential for successful warehouse redevelopment projects in dynamic industries like pharmaceutical distribution.