Stepping Into a Massive Project? Here’s Where To Start

So you’re the new VP of supply chain operations, and you’ve been asked to take the lead in a brand new multimillion dollar distribution center project for the company. Easy! Piece of cake, right?

But then the questions start pouring in:

• Where do you begin?
• How do you build a team and define roles?
• What project structure ensures that this investment pays off for years to come?
• And perhaps most importantly—how do you balance flexibility and structure in execution?

This is where proper project methodologies such as Agile and Waterfall play a crucial role. When implemented together, both can help navigate infrastructure challenges, shifting requirements, team dynamics, and technical complexity.

Why a Hybrid Approach Wins

Modern DC automation projects span both physical infrastructure and dynamic digital systems. As a quick refresher or introduction, the two major domains demand different management approaches:

Waterfall

Best for structured, high-cost, high-risk components that must be planned and delivered with precision. Think:

• Conveyor systems
• Sorters and robotic arms
• Electrical and plumbing infrastructure
• Permits and compliance processes
• WMS (warehouse management system) implementations

Agile

When used as part of a hybrid project management framework, Agile can deliver stability where it’s needed and adaptability where it matters most. Ideal for rapidly evolving, collaborative, and iterative tasks. Perfect for:

• WMS upgrades/configuration
• WES (warehouse execution system) integration
• Process mapping and optimization
• Training, testing, and change management

Building Your Hybrid Project Framework

Establish a Trusted Steering Committee (SteerCo)

Your SteerCo isn’t just a formality, it’s your control center for project success. This cross-functional leadership group ensures the strategy is aligned across all departments and key decisions don’t stall.

Typical Members

• VPs and directors (ops, supply chain, IT)
• WMS/product owners
• Program and project managers
• Engineers and technical leads

Key Functions

• Strategic alignment and decision-making
• Prioritization of issues and escalations
• Governance and accountability

A tight-knit, highly communicative SteerCo keeps the “hands on the wheel” throughout the project.

Bring in Process Owners at Initiation: Your Operational Reality Check

In every warehouse function—receiving, picking, shipping, replenishment, inventory, returns—current process owners can be found who live and breathe those systems. Including them early for the best results:

• Provide context for existing pain points and bottlenecks
• Surface overlooked dependencies
• Inform realistic process redesigns

You can choose to keep current process owners involved through the entire project or transition them in as new processes take shape. Either way, clarity and communication at project kickoff are essential.

Their real-world expertise is a goldmine for identifying what needs to change and what must stay the same as you progress into your new long-term processes.

New Build vs. Retrofit: Infrastructure Decisions With Strategic Impact

Deciding on the facility type will be a critical first step in beginning this Distribution Center strategic project. It is essential to weigh the benefits of a custom built facility vs the cost of repurposing an existing facility.

Greenfield: A Blank Canvas

Building from scratch gives you full control over layout, electrical design, automation architecture, and future scalability. You can achieve more:

• Integrate modern tech without legacy system constraints
• Design for seasonal and long-term volume goals
• Create clean process maps from day one

Challenges still exist, however:

• Aligning with city permitting and inspection timelines
• Ensuring utility companies can meet your power demands
• Managing timelines across multiple contractors and suppliers

Brownfield: Realities of Working With What You’ve Got

Retrofitting can be cost-effective but brings unique obstacles:

• Outdated infrastructure may not support high-powered automation
• Physical constraints can limit optimal layout designs
• Downtime from shutdowns or phased construction adds operational risk
• Existing systems and personnel must adapt to new technologies
• Business continuity

Whether building new or retrofitting, expect hiccups. The agile mindset helps teams stay focused on “what we can do now” vs. waiting for perfect conditions.

Mechanical Components: Plan Early, Execute Precisely

From racking systems to automated box erectors and autobaggers, mechanical installations carry long lead times and often depend on formal permitting. Situations like this are best managed with Waterfall principles.

Examples

• Custom autobagger machines for large SKUs may take several months from design to delivery
• Racking designs must align with fire codes and sprinkler layouts, requiring city/government approval. 
• Power upgrades may require coordination with local utility providers and even political stakeholders for permits or easements

Recommendations

• Finalize mechanical specs early
• Pre-order machines to align with your go-live timeline
• Plan for on-site arrival well before integration begins

By planning early and pre-ordering key components, you can avoid delays and ensure smooth integration. Aligning specs with regulations upfront minimizes risks and keeps your timeline on track.

Operational Process Design: From Legacy to Next-Gen

Once infrastructure is underway, you must define how the facility will operate. This includes everything from order routing and inventory flow to user interaction with software systems.

Key Steps

1. Define objectives and key metrics: What should the process achieve (daily volumes, peak performance, labor efficiency)?
2. Engage owners: Bring in both legacy process owners and new operators.
3. Collaborate: Map out desired flows, validate with technical and operational teams.
4. Identify blockers: What obstacles exist: space, systems, or skills?
5. Plan the timeline for change: Break it down into sprints or phases.
6. Align cross-functionally: IT, WMS, security, compliance must all buy in.
7. Iterate and regroup: Continuous improvement doesn’t stop at go-live.

WMS-WES Integration: The Brain and Nervous System

A critical success factor is the communication between your warehouse management system (WMS) and warehouse execution system (WES). These systems must do the following:

• Share real-time data
• Prioritize tasks effectively
• Execute without errors under live conditions

Challenges include:

• Handling data synchronization under load
• Managing exceptions in order fulfillment
• Avoiding delays caused by misconfigured business rules
• Ensuring operational staff are trained to troubleshoot and adapt

WMS and WES integration is vital for seamless data flow, task prioritization, and error-free operations. Without regulating the synchronization of the systems, mis-alignments can cause delays, higher costs, and lower customer satisfaction for the end consumer.

Testing: The Most Underrated Phase of the Project

Often squeezed in at the end due to delays upstream, testing is where assumptions are validated—or fall apart.

Why Testing Matters

• Uncovers misaligned logic between WMS and WES
• Identifies timing issues with robots or conveyors
• Highlights data mismatches or missing SKUs
• Surfaces training gaps for warehouse associates
• Builds user trust in the new systems

Testing should be done throughout all phases of the project that are applicable rather than. just testing at the end of sprints. Skipping or rushing testing is not saving time, it’s borrowing future pain.

Shared Responsibility: Customer + Implementor Must Own Testing

Testing is not just a contractor’s job. It’s a partnership. Here’s how roles typically break down:

Project Closeout: Where Many Projects Stumble

The finish line isn’t just when hardware arrives. It is when systems, teams, and processes align and perform together. This phase is critical and should include the following:

Signoffs

• Ensure all deliverables meet specs (Waterfall)
• Rapidly fix small issues before go-live (Agile)

Final Calibration

• Refine picking rules or automation paths
• Iterate with live feedback from test cycles

Go-Live Risk Management

• Address last-minute concerns decisively
• Use Agile sprints to resolve issues in real time

Hypercare Support

• Waterfall ensures plan and structure
• Agile enables fast response and adaptation

Final Thoughts

A successful DC implementation is about more than just technology. It includes orchestrating people, systems, and strategy. Hybrid project management allows you to do the following:

• Plan infrastructure rigorously
• Adapt to evolving software and operational needs
• Collaborate across business units
• Minimize go-live surprises
• Optimize for long-term scalability

You’re not just building a facility, you’re transforming how your business operates. And the right methodology can make the difference between a launch and a legacy. 

Managing a complex distribution center project, especially one involving automation, systems integration, and organizational change, can feel overwhelming. Between coordinating stakeholders, juggling timelines, and solving unexpected issues, it’s easy to lose momentum or confidence.

That’s where we come in.

Whether you’re just getting started, knee-deep in design, or trying to course-correct mid-project, Summit Advisory Team can step in to help you:

• Reframe your approach
• Untangle blockers
• Reignite momentum
• Deliver measurable outcomes

No matter where you are in the journey, we’ll meet you there and help you drive it forward.