CASE STUDY 2
Customer: Food distribution and retail
REQUIREMENTS
- new distribution center feeding more than twenty retail stores;
- increase in inventory turns.
INITIAL PARAMETERS
Covered area: 400 sq.m.
Height: 6 m
Volume: 2,400 cubic meters
INITIAL SITUATION
- long picking lead time;
- insufficient and inadequate space.
PERFORMED ACTIVITIES
- survey on existing product families (more than 50,000 end items of various shapes and sizes);
- reclassification of materials with respect to the analysis of load capacity of the new stock;
- new layout for product families ;
- ABC analysis, by inventory turn gross margin, etc.
FINAL PARAMETERS
- Covered area: 4,400 sq.m.
- Height under Beam: 6.6 m
- Volumes: 29,040 cubic meters
- Number of pallet locations: 1,904
- LIFO Area: 1,200 sqm
- Number of pallets LIFO managed: 2,277
- Material entry area: 400 sq.m.
- Shipping Area: 400 sq.m.
RESULTS
- availability of suitable areas for business development;
- definition of a “LIFO" warehouse at high parameters of saturation and inventory turn performance for class A products ;
- definition of a traditional warehouse for class B and C materials.