Warehouse Operations

Problem To Be Solved:

A distribution company shipped over $50,000 of product without invoicing customer. Senior warehouse personnel terminated. Solertis hired to review warehouse operations in order to prevent future errors.

Solertis Response:

Analyzed:

  • Existing warehouse operations practices and procedures
  • Utilization of material handling equipment
  • Facility layout
  • Order flow from office to warehouse
  • Key success factors in sales and marketing that dictate operational requirements

Implemented:

  • New facility layout including redesign of receiving and shipping
  • New shelving and flow deck
  • New picking carts and other material handling equipment
  • Location address system
  • Radio frequency technology and bar code scanning
  • Program to reduce time from dock to stock
  • Systems that improved process flow from picking to shipping
  • Process for tracking missing items needed for orders
  • Program for consolidating inventory at multiple locations

Results:

  • Saved company $80,000 in the first year alone.
  • Reduced time needed for receiving from over two days to just one-half day.
  • Reduced variances reported on receipts from vendors.
  • Increased throughput per station in shipping department.
  • Improved inventory accuracy as measured by product on-hand but not found for orders.
  • Improved order accuracy as measured by decrease in customer complaints.
  • Improved order processing efficiency resulting in 20% reduction in staff needed for picking.
  • Improved product density resulting in need for 25% less shelving.
  • Developed key performance indicators to measure warehouse activity.

Got Challenges? Get Solutions. Contact Solertis.

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