CASE STUDY 2

Customer: Food distribution and retail


REQUIREMENTS

- new distribution center feeding more than twenty retail stores;

- increase in inventory turns.

INITIAL PARAMETERS

Covered area: 400 sq.m.

Height: 6 m

Volume: 2,400 cubic meters

INITIAL SITUATION

- long picking lead time;

- insufficient and inadequate space.




PERFORMED ACTIVITIES

- survey on existing product families (more than 50,000 end items of various shapes and sizes);

- reclassification of materials with respect to the analysis of load capacity of the new stock;

- new layout for product families ;

- ABC analysis, by inventory turn gross margin, etc.

FINAL PARAMETERS

- Covered area: 4,400 sq.m.

- Height under Beam: 6.6 m

- Volumes: 29,040 cubic meters

- Number of pallet locations: 1,904

- LIFO Area: 1,200 sqm

- Number of pallets LIFO managed: 2,277

- Material entry area: 400 sq.m.

- Shipping Area: 400 sq.m.


RESULTS

- availability of suitable areas for business development;

- definition of a “LIFO" warehouse at high parameters of saturation and inventory turn performance for class A products ;

- definition of a traditional warehouse for class B and C materials.