Metals Manufacturer/Distributor Resets Entire Plant Operations

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 Canadian metals manufacturer/distributor producing 225,000 tons/year of different products (approximately 65 SKUs) with projected growth rates of 50% per annum over the next 3 to 5 years.

Scope of KOM International's Mandate

The client was experiencing rapid growth rates and needed to handle increased throughput by improving an inefficient warehouse/ plant layout with poor storage capacity utilization and low productivity levels. KOM International was mandated to improve the facility layout, improve operating procedures and introduce new technologies to improve overall efficiency.

Critical Issues

• New storage space required for production line expansion
  
  
• Existing storage layout was inefficient
  
  
• Lengthy order selection process (re- handling, memory-based processes, etc.)
  
  
• Lack of dock space resulting in congestion
  
  
• Lengthy loading time (up to 4 hours/trailer mainly to secure the load)
  

Objectives

• Improve facility layout and reduce warehouse expenses to enable business growth

KOM International's Recommendations

• Reset of distribution / plant layout to open the dock and increase storage capacity
  
  
• Tested, selected and implemented new inventory control and bar coding systems

Benefits

• Increased plant storage capacity by 15% without any expansion
  
  
• Significantly improved productivity and efficiency of distribution operations (order picking, dock activity, product flow, etc.)
  
  
• Enabled real-time inventory control and significantly improved inventory accuracy