New layout for existing warehouse, implemented during the Client’s busy season
- Analyzed the current state of: 1) receiving to putaway, 2) pick/pack/ship, and 3) information flows from customer order to ship
- Discovered: 1) No identifiable “center of gravity” around shipping dock doors, 2) Racks are aligned wrong, 3) SKU locations do not match velocity, and 4) Value-add operations are located in “prime location” but are only 6% of orders.
- Improvements: 1) Re-aligned racking and shelving, 2) Created velocity codes by item (V1, V2, V3) and located items in new layout by velocity and size, with highest velocity items near the pack stations and dock doors, and 3) Moved value-added operations further from the center-of-gravity
- Increased order throughput from 800 orders per day to 2000, with a reduction in workforce from 22 to 20 people.