Problem diagnosis, evaluation and solution for a complex parts distribution centre.
The National Parts Centre provides a next day service to 8,000 internal customers. Installation engineers maintain and repair the domestic heating systems and appliances for over 4 million contract services customers located throughout the UK. Orders placed by 18.00 hrs on day 1 are processed and delivered ready for location collection by 07.45 hrs on day 2.
Click-On Logistics was asked to help identify problems within the current operation and find the best way to solve them. This resulted in a period of detailed operations analysis and support to develop more effective warehousing procedures. A set of rules for inventory holding was developed, which together with a new method of put-away and space allocation, enabled free space to be identified. As a result, over 10,000 bin locations were earmarked for emptying approx. 20% of the total. Excess inventory was subsequently removed, creating a lifeline for a building that had been considered inadequate.
Once this had been resolved, there was ‘space to breathe’. There were two key deliverables at this stage.
- A capacity plan that linked buisness activity with space requirements for each major operating area
- An assessment of when a new building would be required
Given the need for detailed planning, it became clear that a new warehouse design project would need to start imminently. The design incorporated an appropriate level of automation, which generated critical savings required for the business case, which were to be scrutinised at main board level. The result was an innovative ‘goods to man’ picking system of a scale not seen previously in the UK, and the backbone of the whole operation was a highly mechanised conveyor system. Benefits included the scalability of the new operation to accommodate business growth as well as significant cost reduction.
Click-On Logistics were engaged throughout the project to provide operations support and project management of the implentation and transition.For further information on this or other case studies please email firstname.lastname@example.org.