Logistics Network Optimisation; Adding significant capacity
In this case study, we demonstrate how the Logistics Network Consultants at ASCALi are able to help clients make the most of what they have. Driving added capacity into logistics operations is a great way to off-set the costs and risks of change, enabling more time to be taken over big decisions as well as freeing up capital resources for other value-adding opportunities across the business.
Challenge
Our client is a rapidly expanding supplier of product in the B2C pet Foods Market. Operating a multi temperature warehouse facility they had hit capacity issues within their existing footprint that necessitated them identifying how best to expand capacity within their operating solutions.
Having already designed a warehouse extension, the client sought to establish how much more they could get in terms of operating capacity from their existing solution prior to making the significant investment in expanding the warehouse, or perhaps adding a new warehouse into their logistics network.
Approach
The approach of our logistics network consultants was to firstly understand the operating methodology used by the business within its logistics solution. This understanding would be supported and enhanced by a review of operating throughput data and inventory analysis to support conclusions made through observation.
This review was a quick review that aimed to provide clear guidance to the client as to how they could best go about maximising their capacity and operational flows in a cost efficient and safe operating way.
Actions
Our consultants worked on site to understand the client’s processes in a detailed and methodical way. We attended site when our client conducted the majority of its operational picking and packing tasks, mainly overnight. We also met with key stakeholders in the business to understand their challenges and requirements for the solution moving forward. We supplemented our observations by the gathering and analysis of a range of data and metrics held within the operation.
Armed with the intelligence gathered in the discovery phase we developed a range of operating solution options that we narrowed down to an operational recommendation as to how best to make use of the building footprint by changing layouts and process is and applying clear use of modern enhanced storage media equipment, demonstrated through detailed CAD drawings and schematics of the proposed solution.
The Results
The outcome of this process so the development of a selection of storage media and picking layout recommendations that enabled the client to move from its existing operating model to a new, leaner process and solution. This process optimised the client’s logistics network choices, and saved them the considerable expense of adding additional fulfilment sites onto their network.
The method of demonstrating the solution was clear and understandable for the client to the extent that they were easily able to move forward and implement the proposed solution,n clearly understanding the benefits of the options presented. Not only did the solution create scope for operational efficiency improvements in the region of 15% but there were also storage capacity enhancements of upwards of 35% within the existing site footprint enabling the client to defer future logistics network choices for a period well into the future.