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Problem
To Be Solved:
A
distribution company shipped over $50,000 of product
without invoicing customer. Senior warehouse personnel
terminated. Solertis hired to review warehouse operations
in order to prevent future errors.
Solertis
Response:
Analyzed:
- Existing
warehouse operations practices and procedures
- Utilization
of material handling equipment
- Facility
layout
- Order
flow from office to warehouse
- Key
success factors in sales and marketing that dictate
operational requirements
Implemented:
- New
facility layout including redesign of receiving and
shipping
- New
shelving and flow deck
- New
picking carts and other material handling equipment
- Location
address system
- Radio
frequency technology and bar code scanning
- Program
to reduce time from dock to stock
- Systems
that improved process flow from picking to shipping
- Process
for tracking missing items needed for orders
- Program
for consolidating inventory at multiple locations
Results:
- Saved
company $80,000 in the first year alone.
- Reduced
time needed for receiving from over two days to just
one-half day.
- Reduced
variances reported on receipts from vendors.
- Increased
throughput per station in shipping department.
- Improved
inventory accuracy as measured by product on-hand
but not found for orders.
- Improved
order accuracy as measured by decrease in customer
complaints.
- Improved
order processing efficiency resulting in 20% reduction
in staff needed for picking.
- Improved
product density resulting in need for 25% less shelving.
- Developed
key performance indicators to measure warehouse activity.
Got
Challenges? Get Solutions. Contact
Solertis.
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