Food Manufacturer/Distributor Expands Freezer

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

An U.S. subsidiary of a multinational food manufacturer and distributor requires more freezer storage capacity to store raw materials and finished goods.

Scope of KOM International's Mandate

The client's distribution facilities required expansion and inventory accuracy and date rotation required significant improvements. KOM International was commissioned to evaluate alternative materials handling systems, to design and implement a new facility expansion and to select/implement a new warehouse management system.

Critical Issues

• Shortage of storage capacity
  
  
• Inventory accuracy and rotation

Objectives

• Expand frozen food facility
  
  
• Select and implement a WMS with RF / bar coding technology

KOM International's Recommendations

• A new 24,000 square feet distribution facility expansion with a height of 40 feet was designed and implemented
  
  
• Changed orientation of building site to improve truck access
  
  
• Compared two options - double-deep and four-deep pushback racks
  
  
• Based on the cost of equipment and building, double-deep racking was selected
  
  
• Selection and implementation of a new warehouse management system
  
  
• Implementation of new putaway and picking processes

Benefits

• 36% sales increase with no increase in warehouse labor expense
  
  
• Optimal use of existing site