Foodservice Distributor Expands and Builds Two New 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 foodservice distributor with distribution facilities in over 10 locations across the United States servicing Dry Grocery, Perishables and Frozen Food product lines to restaurant chains, grocery chains, and institutional clients.

Scope of KOM International's Mandate

The client required increased throughput capacity to handle business growth as well as overall labor productivity improvements in its existing distribution facilities. KOM International conducted an audit of each distribution center to assess its strategic location, operating methods, computer systems, building value, equipment value, and growth potential.

Critical Issues

• Shortage of storage capacity
  
  
• Distribution efficiency

Objectives

• Optimize the firm's supply chain
  
  
• Implement quick changes to improve efficiency

KOM International's Recommendations

• KOM International designed and implemented new facilities in two locations, as well as the expansion of and reset in a third
  
  
• Defined equipment specifications and quantities and solicited bids for all material handling equipment, including:
  
  • Pallet racking (including special ergonomic beams at floor level)
    
  • Push-back racking
    
  • Single and double pallet jacks
    
  • Reach trucks and counterbalance lift trucks
    
  • Labeling
    
    
• Assisted in the selection and installation of the material handling equipment, as well as dock equipment
  
  
• Slotting of each item to a new pick location
  
  
• Move planning and changeover support
  
  
• Creation of data files to seed the warehouse management system
  

Benefits

• Reduced distribution costs by centralizing operations
  
  
• Successful implementation of two new distribution centers and one expanded facility within a ten-month period from study/design to completion of implementation
  
  
• Increased capacity and slots to handle new business
  
  
• Improved ergonomics by using special beam for heavy products