Technical Apparel Company Cuts Warehousing Costs Through Process Improvements
Client Context
- Technical apparel company with €300+ M turnover globally
- 20,000 square meter warehouse with hybrid operating model mixing internal personnel/cooperative
Key Challenges
- Improve warehousing productivity and optimize costs across internal and external (3PL) warehouses’ activities
- Approximately 20,000-25,000 SKUs (including current and past collections) managed among 16,000 pallet position, 550 drive-in, 44,000 bin box slot into multi-shuttle automated system and 6,000 carton slot for manual picking
Approach & Key Success Factors
- Carried out a preliminary assessment of process mapping and KPI definition and development
- Introduced a “productivity-volume” method in personnel right-sizing for key direct operations (container inbound, picking, outbound, …)
- Implemented improvement activities across internal and external warehouses’ operations, in particular:
- Picking with double capacity of manual picking, routing optimization and stock allocation
- Flexible storage system dedicated to single-piece management of low runners (C class, 7,000-9,000 SKUs)
- Optimal allocation between internal and external 3PL workload and inbound (containers’ unloading) and outbound (picking)
- Packaging size review to improve box fulfillment and minimize transportation costs
Results
€1M
Savings per year
22%
Savings on direct staffing
37%
Reduction in external warehousing
Developed a performance dashboard to enable monitoring of productivity and workload across warehouse areas (inbound, forklifts, picking, outbound)
Reviewed warehouse optimization procedures (replenishment, stock re-allocation activities)