WAREHOUSE STREAMLINING

CASE STUDY: WAREHOUSE STREAMLINING

Industry:
Leading Building Components Manufacturer
Company Size:
2,000+
Project Location:
United States
Problem Statement:
Our client had experienced significant growth for the past years, the warehouse at their SD plant was jammed with RAW, WIP and FG inventory (~160,000 SKUs) and operational bottlenecks/inefficiencies were addressed with hiring additional warehouse operators. Finally the decision was made to perform a profound warehouse streamlining in order to improve efficiency and to free up wasted storage capacity.
STREAMLINERS’ Approach and Solution
Meeting:
Understand customer's pain points and future warehouse capacity demands
Deep Dive:
Get a high-level overview of current warehouse functionalities, internal/external customers, footprint, material flows and staffing
Hypothesis:
The consolidation of SKUs, disposal of obsolete inventory and revamp of racking will free up ~25% of storage capacity within the existing footprint. Redesign of processes and material flows will reduce warehouse headcount by ~20%.
Project:
1 consultant
12 weeks
Deliverables:

Lean warehouse setup, processes and material flows implemented

Storage capacity increased by at least 25% within footprint

Warehouse headcount reduced by at least 20%

Bottom Line Impact:
Warehouse capacity increased by 31% (1,550 pallets)
Warehouse headcount reduced by 36% (~$600K)

Capacity Increase

 

Fees vs. Bottom Line Impact