Five-Year Facility Strategy
National Customer Fulfillment Center
Challenge:
Based on business plans submitted by the different entities served by a fulfillment
operation, business growth needed to be handled within the existing facility
while maintaining the same level of service.
Actions: Performed capacity analysis and developed a list of
five alternatives to change facility storage areas in order to satisfy the business
needs. Among the alternatives were: construction of additional space ($25MM),
construction of a new mezzanine, or reconfiguration of numerous cantilever shelving
and pallet racking areas.
The reconfiguration of multiple storage areas and processing
centers along with the construction of a new mezzanine were among the most
cost effective alternatives implemented in order to satisfy a diverse group
of business requirements.
Results: The capacity analysis caused the warehouse capacity
to increase by 25%. Redesigning different processing areas also attained additional
savings.
The above strategic facilities changes saved an estimated
$2M over a two year period while satisfying customers requirements. The integration
of
material handling equipment, technology, and skillful people within one single
facility improved the operation’s efficiency and direct customer satisfaction.
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