Every link in the supply chain impacts the rest
A Global technology company recognized the need for additional inventory space in their Texas distribution center. Curiously, however, it wasn’t space they ultimately required, but improved storage and order processing. SRSI’s data-driven solution accommodated their inventory expansion needs and also created additional space that could be used for their wider supply chain consolidation. In addition, the modifications allowed them to improve processing productivity.
The client’s warehouse is responsible for fulfilling orders of industrial-grade telecommunication parts. They knew they were running out of space, but they also knew that the facility was not cubed out to maximum efficiency. SRSI was called in to offer one of several possible solutions.
- 100,000 sq. ft. facility
- 16,000+ SKUs
SRSI approached this challenge using data-driven methodology. The options provided by competing warehouse integrators offered little more than a single storage medium with narrow aisles and turret trucks access. SRSI let the numbers drive the solution.
SRSI conducted a throughput analysis of fast movers and other selected SKUs. Inventory specs were also collected from scanning and measuring each of those items using Cubiscan. The results were then applied to the wider inventory in order to prescribe the best storage mediums, picking methodology and equipment to eliminate wasted space and optimize cube storage. SRSI’s proprietary data analysis software was the tool used to extrapolate the data onto the wider SKU stock providing the final SKU slotting solution.
During the process it was recognized that a number of SKUs could apply to parts of varying sizes, i.e. one SKU for several differently-sized components. Clearly identifying and storing these items for efficient and accurate picking was a surprise challenge but one that SRSI was able to overcome with some creative thinking and some handy totes.
- Optimized the cube space of the facility
- Identified SKUs better suited for case pick vs full pallet
- Configured a combination of full pallet storage, small parts storage and full case pick.
- Reconfigured aisles from 12’ – 14’ to narrow aisles.
- Added pick areas for hand-stacked case picking.
- Added 16’ tall shelving for small parts order picking assigning some SKUs to tote storage and some larger SKUs for stored directly on the shelves.
- Specified order pickers and a reach truck that would best accommodate the redesigned storage application.
SRSI delivered a full turnkey solution including data gathering, storage medium selection, SKU slotting and vehicles & equipment recommendations.
The data-driven solution allowed the client to solve the immediate need of increased inventory capacity. In addition, SRSI augmented the benefit to the customer by creating 30%-50% more storage space within the existing facility plus improved pick rates and efficiency.
The project was completed in approximately 3 1/2 months.