providing logistics services and solutions
A key account for this third-party logistics provider was experiencing efficiency declines and capacity constraints in three of its most important distribution operations.
Facing a decline in labor productivity numbers and on-going capacity constraints within three fulfillment operations owned by one of its key accounts, this third-party logistics provider turned to Syncontext to provide an assessment of available improvement opportunities and expected lifetime evaluations for each site.
After a detailed review of existing operational data and review of each site’s physical layout, it became clear that shape, clear stacking height and overall footprint were sub-optimal for each site, limiting optimization options.
As moving either operation was not something the client was interested in exploring, Syncontext knew it had to be creative with material handling solutions.
Using SKUstream™, four conceptual design scenarios were designed for each operation with varying levels of impact on facility lifetime and labor efficiency. In turn, each scenario also required varying levels of capital investment.
As all four existing sites were highly conventional in terms of existing processes and material handling, Syncontext knew if complexity was added in the form of automation or non-conventional solutions, cost justification would have to be provided and compared amongst the available design scenarios.
of hours saved every week
from eliminating 520 miles traveled and 5,000 replenishments
in annual savings
uncovered for a future layout including automation and a reduced footprint
integrating a data-driven design operation with implementation and maintenance
Prior to the assessment, their client was unsure of how many months or years each facility had left in its lifetime and most importantly, no way of knowing the productivity and financial trade off they were making as a result of each site’s size constraints. After the assessment they not only knew the financial impact of continuing to operate under the status quo, they had a roadmap inclusive of four different material handling scenarios, including the introduction of automated modules, that would not only add lifetime, but improve labor efficiency as well.
The beauty of our system is it’s entirely based on your company’s real-world data and proven algorithms, no guess work involved. Give us two months of data, we’ll run the numbers, and you’ll learn exactly how much you could be saving each week.Learn more about Syncontext’s Strategic Opportunity Assessment