The Need
A manufacturer specializing in compact equipment was intent on finding ways to increase capacity within the company/Pierce shared warehouse without having to increase the allotted footprint. The client was experiencing a big increase in parts demand throughout their dealer network therefore the need for additional stock was a must.
Re-warehousing was already taking place, but an urgent challenge was issued to Pierce from the client to really make an effort to free up much needed space.
The Solution
Pierce employed its knowledge of “best in class” distribution practices to accomplish the task of increasing warehouse capacity, for example:
- Re-designed process flow facility wide
- Re-configuring bins and racks
- Reduce the number of multi locations – one part per location
- Go “vertical”
- Re-emphasis stocking of parts by classification A-B-C
- Remove pallets from racks where possible
The Result
Through Pierce’s efforts, the following was accomplished:
- At the time, warehouse capacity was at 100% - with 14 Million in Inventory (53,000 Part #’s)
- Today, warehouse capacity is at 85% - with 19.5 Million in Inventory (65,000 Part #’s)
As a dedication to the client and to keep efficiency and cost effectiveness at the forefront, Pierce applied its internally developed measuring tools to successfully reduce the overall operating cost per line, by department and by individual performance.
It is essential for Pierce to have a developed culture for management practices in place as well as a sound quality program to ensure Pierce’s commitment is continually improving, therefore increasing ROI (Return on Investment).