The team had run out of ideas and were too busy with the day-to-day operations.
This engineering PLC had manufacturing plants situated at several sites throughout the UK. The logistics side of the business was based at a central warehousing and distribution facility which also housed the management and administration teams.
Three satellite units supplemented the main "picking" warehouse for the group; unfortunately, they were hundreds of miles apart! In addition to the running costs associated with the warehouses, several other problems had emerged:
Stock had to be transported between the various sites
Products held in storage were often duplicated, leading to over-stocking
The operation was difficult to manage effectively, mainly due to the geographical constraints
We were asked to recommend a practical course of action that would lead to lower operating costs.
Our solution centred on consolidating onto one logistics site, consisting of a main warehouse and a back-up store to handle seasonal products. We also devised a complete working layout and a series of standard operating procedures to accompany the changed conditions.
As a result of the project, two of the warehouses were closed and staff were re-located within the group. Stock was also greatly reduced and the new layout at the central warehouse led to more efficient picking and despatch.
LOGISTICS DIRECTOR - "We could never have achieved that result with our in-house people, we had become too close to the issues."