Pet Supply Manufacturer/Distributor Consolidates Distribution Centers

The following case study does not include company names or locations to protect the anonymity of our clients. For further information, please contact KOM International.

Client / Industry

A North American manufacturer and distributor of pet supplies with operating divisions in every continent around the world.

Scope of KOM International's Mandate

The client operated multiple distribution centers in one North American city and additional warehousing facilities in another city. The multiple facilities were consolidated into a single 166,000 square foot distribution center designed and implemented by KOM International.

Critical Issues

• Inventory held in multiple distribution centers and storage warehouses
  
  
• High distribution costs
  
  
• High inventory assets / low turns
  
  
• Service levels below objectives

Objectives

• Reduce warehouse operations expenses
  
  
• Improve order fill rates and turnaround times

KOM International's Recommendations

• Slow moving split case items stored in shelving units
  
  
• Medium velocity split case products picked from 5 horizontal carrousel workstations consisting of 4 carrousels per station
  
  
• Fast moving full case items stored and picked from single and double deep racks
  
  
• Conveyor system with automated sortation by customer shipment for all merchandise picked from the carrousels
  
  
• Implementation of batch picking for small orders
  
  
• Selection of a new warehouse management system to improve labor productivity and inventory accuracy
  
  
• Introduction of radio frequency and bar coding technologies for all warehouse functions

Benefits

• Significant reductions in warehouse operating expenses
  
  
• Significant reduction in inventory assets
  
  
• Back orders were reduced as a result of major improvements in order fill rates
  
  
• Distribution center storage capacity was increased by 30%
  
  
• Split case order picking rates from the carrousels improved by 500% to 200 order lines/hour (rate includes replenishment labor)
  
  
• Full case order picking productivity increased by 25%
  
  
• Mobile equipment reduction as very narrow aisle cherry-picker trucks were replaced with double deep reach lift trucks