Logistic Consultancy

Catalogue / E-commerce based wholesaler of catering equipment

The client is a catalogue/e-commerce based wholesaler of catering equipment. Due to increase in demand, the client had filled its existing 100,000ft² facility and was using overflow storage, which was proving to be expensive for the company.

The client wanted to explore alternative approaches in which it would be able to operate an import centre in a low space/labour cost location and replenish via trunk to its main distribution centre. As well as this, the client wanted to review the mix of the pick-face locations in the warehouse and identify any possible improvements that could be made in their warehouse processes, thus optimising their warehouse.

Go Supply Chains Warehouse Consultants were able to identify the SKUs/ranges to the store in the import centre. This allowed Go Supply Chain to accurately assess the sizing proposal against the projected business growth.

Go Supply Chain’s Warehouse Consultants calculated the safety stock to store in the main DC pick-face to ensure target stock availability, with the rules of thumb derived from these for implementation. Go Supply Chain calculated the safety stock to store in the main DC pick-face to ensure target stock availability, rules of thumb derived from these for implementation.

Go Supply Chain developed a cost/benefit analysis of the import centre proposal. This allowed the client to clearly see an estimate of the strengths and weaknesses of their import centre proposal, helping them to make a better-informed decision.

Go Supply Chain established a process review which identified potential improvements and system dependencies. This allowed the client to understand which potential improvements to make.

Client

  • Catalogue / E-commerce based wholesaler of catering equipment

Requirements

  • The client had filled it existing 100,000ft² facility and was using nearby overflow storage, which was expensive.
  • It wanted to explore an alternative approach in which it would operate an import centre in a low space / labour cost location and replenish via trunk to its main distribution centre.
  • Additionally, we were asked to review the mix of pick-face locations in the warehouse and identify possible improvements in warehouse processes.

Business Benefits

  • Identified SKUs/ranges to store in the import centre.
  • Assessment of sizing proposal against projected business growth.
  • Calculation of safety stock to store in the main DC pick-face to ensure target stock availability, rules of thumb derived from these for implementation.
  • Cost/benefit analysis of the import centre proposal.
  • Modelling to determine the correct pick-face sizing by SKU, considering the trade-offs between picking and replenishment rates and the resultant effect on overall productivity.
  • Process review identified potential improvements and system dependencies.

Published by: Go Supply Chain Ltd