The Challenge:
A leading industrial distributor with more than 350 branch and warehouse operations engaged Quantumlytix to design a distribution hub for their network. As a result of acquisitions, there were four warehouses located in the same region creating excessive overhead cost and ongoing challenges to manage. The goal was to combine four warehouses into a hub, while expanding the capacity by 150%.
Results:
We conducted a detailed analysis of the operations at 4 warehouses to determine current state process capabilities & constraints, inventory profiles, and material handling requirements. Next, we designed and engineered optimal future state layout of the distribution center. Finally, we managed the construction, installation of material storage and equipment, inventory migration, and ramp-up of the new facility.
Highlights this client achieved:
- Implemented pick zones by product type and provided respective material handling equipment recommendations.
- Redesigned outbound picking and sorting process, wave management, and pick paths to increase efficiency.
- Mistake proofed picking process by integrating tools to verify accurate quantity is picked.
- Slotted the facility by velocity for optimal picking productivity.
- Designed work cells based on product type.
- Managed construction and installation of rack, conveyors, and material handling equipment.
- 50% reduction in shipping errors.