Organic Products Supplier
Warehouse Design for a Fast Growing UK Business
Go Supply Chain was engaged by the client, a fast growing supplier of organic herbal teas and wellbeing products, to determine the business’ requirements for warehousing over the next few years and design an appropriate operational solution.
The client is a medium sized company that produces a range of ethically sourced, organic herbal products that are sold through a variety of channels including supermarkets, wholesale, specialist shops and direct to consumer (via web / mail order). The product is sold in the UK and internationally.
As the company grew rapidly it had taken on additional distribution space, but had not until this review had time to take a step back and fully assess what would be the best way forward for the warehousing operations. The review preceded the implementation of a new ERP system, which offered an opportunity to revisit all processes within the operation and ensure that in future they are in line with best practice.
Understanding the existing operation
Go Supply Chain’s logistics consultants worked closely with the client’s operational and management teams to establish an understanding of the existing operation. There was quite a high level of complexity in the operation and it was important to combine our data analysis with a good level of client engagement to ensure requirements were fully understood.
Applying growth and designing the warehouse
In common with our approach to gaining an understanding of the existing logistics operation, it was necessary to combine the growth plan provided with workshops and conversations with the management team to get a clear picture of future requirements.
We applied growth at SKU level and allocated SKUs to appropriate picking and storage media based on their physical characteristics, rate of movement and stockholding.
We then designed the warehouse layout, producing CAD drawings. We combined industry standards with our knowledge gained on the project to produce an operational design tailored to the client’s specific requirements.
We created a labour model to show what level of resourcing would be required in the improved layout and with new ways of working.
Advising on strategic options and warehousing best practice
We provided advice on elements of the process design, giving the client the chance to discuss these with their system provider and incorporate where possible. We discussed strategic options around outsourcing and future product lines to come to an agreed position on where to pitch the sizing of the new warehouse – always a tricky issue for very fast growing companies.
“The new operation will be significantly more productive and provides a platform for the business’ continued growth.”
- Fast growing supplier of organic herbal teas and wellbeing products
- Understand the existing warehouse operation and review requirements for the future in line with the company’s growth plan
- Design the new solution, providing CAD layout drawings, capital equipment and operating cost schedules, and advice on warehouse process improvement
- Plot a ‘strategic roadmap’ for the future of the distribution operations as the business continues to grow
- Better productivity and potential to reduce cost per unit, resulting from having a well-designed layout in one building and improved ways of working
- The opportunity to integrate warehouse best practice processes into the new ERP system from go-live
- A more structured approach to managing the warehouse and confidence in the warehousing solution as a platform for continued growth, as a result of using external logistics consulting expertise
April 13, 2017
Published by: Go Supply Chain Ltd