A $20B+ global Fortune 200 company needed to exit a complex warehouse and consolidate it with two other facilities to reduce overhead costs with a centralized operation. The task included relocating outdated carousels for the small parcel operation. The new facility must support a 10% YoY growth and reduce costs.
Services Provided
Working collaboratively with the client, the team:
- Determined via supplier assessment that the current equipment would not survive the move.
- Identified a solution to increase significantly storage density, maximizing utilization of cubic footage.
- Improved paper-based transactional activity inside the Pick/Pack/Ship operation.
- Reduced non-value add (NVA) activities mostly related to internal logistics and paper filling/capture.
- Reduced cost of poor quality (COPQ) from Customers
Results
The client implemented an automated storage retrieval system solution, the first of its kind for the EMEA business, including integration of the first Auto-Bagging system for weighted counting of very small widgets.
- Elimination of 37 manual paper-based transactions with systematical e-transactions in microseconds.
- Reduction of labor from 18 to four FTEs for picking and put-away operations.
- Optimization of square footage from 25K to 5K maximizing cubic-footage.
- Reduction of COPQ with usage of images of items to be retrieved and decanted.
