Labour costs rising to meet service fill rates
A national transport group with over $800m in annual revenue, our client required a warehouse audit because their DC was under enormous capacity pressure. Maintaining service fill rates was only possible by increasing costly labour (casuals & overtime).
Prological was invited to conduct an audit of the warehouse operations to identify deficiencies in best-practice and to identify and prioritise optimisation initiatives.
Fulfilment assessment and improvements
Prological performed an assessment of the functional activities and warehouse areas to understand:
- storage requirements and capacity limitations
- processes and policies relating to picking, receiving, put away, visualisation, safety, replenishment, inventory management/controls
- possible layout modifications in increase capacity
- opportunities to improve efficiencies through slotting improvements.
Optimised, technology driven warehouse
Prological identified that, whilst the warehouse was functionally ‘full’, there were many opportunities to increase storage capacity by right-sizing storage media and optimising SKU slotting.
Also identified was a long list of prioritised improvement initiatives to align the operations with the business’ functional objectives.
Prological worked with the client to redesign the warehouse layout to maximise storage capability and operational efficiency.
