Redesigning E-Commerce Logistics Networks for Faster, Leaner Delivery in Saudi Arabia

The client was an emerging e-commerce retailer rapidly growing across Saudi Arabia. Rising customer expectations for same-day and next-day delivery placed pressure on their logistics operations, which had developed organically without strategic planning. The leadership required a full redesign of the logistics network to achieve greater speed, lower costs, and scalable capacity capable of supporting seasonal surges. They sought a solution that balanced service-level ambitions with financial sustainability.

We developed an optimized network blueprint using demand heat maps, route simulations, and throughput modelling. The solution introduced a two-tier structure featuring mega-hubs, regional cross-docks, and micro-fulfillment nodes to reduce lead times and improve flow efficiency. The network was designed to support future GCC expansion, incorporate automation, and remain adaptable to evolving demand patterns. Scenario analysis ensured that the final configuration balanced cost, speed, resilience, and scalability.

• Conducted extensive modelling of customer demand clusters to identify required service coverage zones.
• Simulated multiple network configurations using digital twins to assess cost, speed, and peak-season performance.
• Evaluated facility throughput capacity, inventory duplication issues, and long-haul transport burdens.
• Facilitated workshops aligning commercial, operations, and finance teams on SLA goals and cost thresholds.
• Designed a final network architecture integrating mega-hubs, cross-docks, and micro-fulfillment centers.

We recommended consolidating redundant warehouses and establishing central mega-hubs in Riyadh and Jeddah to streamline inbound flows. To accelerate east-west movement, we proposed cross-docks with rapid flow-through capabilities. For major urban districts, we advised developing micro-fulfillment nodes enabling same-day delivery. Centralized inventory planning, dynamic routing tools, and periodic network optimisation reviews were also recommended to maintain long-term efficiency and service quality.

The optimized network improved order-to-delivery performance by 38%, reduced logistics costs by 17%, and increased peak-season capacity by more than 40%. Lead-time reliability significantly strengthened customer satisfaction, supporting higher repurchase rates. The redesigned network also minimized capital exposure by enabling phased expansion, ensuring investments aligned with real demand.