Warehouse Cost & Performance Improvement

Warehouse Cost and Performance Improvement: Equipment, People, Process and Systems Optimisation

The Background

Our Client an iconic Australian sports and lifestyle company have recently integrated a significant business acquisition into its main distribution center. With the business integration complete Siecap was requested to carry out a comprehensive operational review  in order to develop immediate strategies to improve productivity, material flow and safety.

How the Siecap team helped

Conducted a detailed study of warehouse replenishment and picking operations including assessing the effectiveness of product slotting at a style and size level, wave release planning and order grouping.

Confirmed the potential scope to rationalise supplier carton sizes to maximise storage footprints and eliminate off site storage.

Reviewed past season stock management practices and the positive benefit on facility capacity through improved stock management practices.

Identified opportunities to lift order sortation and pallet building productivity towards industry appropriate performance levels by relaying and modifying the conveyor sortation spurs.

Developed a interactive labour planning tool to identify the optimum mix of labour between permanent and casual work forces.

Analysed the outbound freight profile to confirm the carrier charging practices aligned with the rate structure and in the process identified expenditure reduction opportunities that could be achieved by addressing significant gaps in freight lane pricing.

The Results

Strategies to reduce outbound cost per unit by ~12% developed

Storage capacity increase of 14.5% identified through the pursuit of aged seasonal range elimination

Outbound freight savings of ~6% and required remedial actions identified

Elimination of six figure annual off site storage expenses achieved

Comprehensive labour planning model and dashboard developed that incorporated a validation of current productivity levels together with a road map to move towards industry productivity benchmark standards

Our Clients

We have delivered results for distinguished businesses and projects in Australia and abroad.