Improving Warehouse efficiency in contract logistics
Our customer is a worldwide player in supply chain and contract logistics.
| Customer | Anonymous |
| Segment | Contract logistics |
Assignment
Company starts implementation under pressure from new customer without functional automation delivered. In the struggling implementation initially responsible for warehouse move operations and later for inbound processes.
Approach
At the start of the assignment, the inbound surface was awash with stranded pallets and managers of all levels were running from escalation call to escalation call with no time to initiate the priorities just promised.
The first approach was to physically separate regular inbound flow from the move operation. Temporized the push from the customer and moving party with six times the existing capacity. With a growing new team in 3 shifts increased productivity to 80% of moving capacity and created an overflow buffer as physically received backlog. Thus, the target of physical relocation was met and at year end 98% of relocated inventory was booked in preventing an imminent 'wall to wall' count. Intermediate re-engineering of racking and storage locations to avoid getting stuck in an overcrowded utilization rate. Achieved second phase optimization of inbound operation and met contractual KPI s.
Results
- Relocation operation achieved within target 5 weeks by quintupling productivity
- Backlog and off system inventory 98% complete before year end preventing a wall-to-wall count
- Re-engineering racking and storage locations which prevented a stalled operation due to overcrowding
- Coaching of first line operations managers