Business Issue
A window-covering manufacturer acquired a new company resulting in increased inventory stored at its 100%-utilized southeastern location. This resulted in 40% of orders split between Arizona and North Carolina, adding more than $1 million in annual costs. The company leased a larger warehouse to locate the new product and consolidate inventory from its two smaller facilities and asked Flow Consulting to project-manage the integration.
Approach Used
Flow Consulting managed the relocation of the warehouses and organized a team to gather information focusing on seven categories:
- Administration
- Health & Safety
- Construction
- Layout Design
- Warehouse Management Systems
- Information Technology
- Sales & Marketing
Results
The project was completed on time and within budget and the following results were achieved:
- $1 million saved in trucking transfer costs
- $350,000 saved annually in direct labor costs
- 20% improved space utilization
- The inventory relocation was transitioned ahead of schedule
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