Products Not Always Flowing Smoothly?
The client is a large 3PL provider in Canada, distributing to retailers from coast to coast.
The Client had grown the business to the point where a thorough review of its methodologies and storage plan was warranted.
Management recognized the need for assistance to examine its storage configurations with a view to increasing density and facilitate product staging and internal movement.
In addition, some situations were exhibiting material handling bottlenecks and required an examination of the root cause to develop strategies to smooth out the flow of goods.
SCS introduced a team of experts to review the 3PL operational processes. The SCS team observed first-hand the problems at the warehouse floor level, and developed a set of observations and options for the client to consider. The options were rated based on cost, ease of implementation and a projected time frame to accomplish.
The SCS team was able to identify the orientation of the pallet storage racks were not optimal for product movement and storage. In addition, the suggestion to dedicate certain sections of storage for accumulation orders was felt to alleviate some of the consolidation issues prior to shipping that were being encountered.
One situation with one of its major customers was contributing to material flow issues by processing receipt allocations on a delayed basis. This effect was quantified and presented to the client for remediation. In addition, a conveyor re-configuration was suggested to help handle the volumes once allocations were printed.
The Client was able to make changes to its internal storage and throughput design that resulted in operational gains, and the working relationship with its key customer was improved.