Launching an Automated, Cold Storage Warehousing Facility Without Skipping a Beat
OVERVIEW
Our client is a global, temperature-controlled warehousing and transportation services provider, delivering the food and perishable goods industries with cold storage solutions throughout their supply chain ecosystems. Orchestrating the seamless operation of +200 warehousing locations, spread across 4 continents, our client leads the industry in conventional and automated warehousing.
Our team was engaged by the client’s Supply Chain Solutions and Operations Teams to support a newly commissioned facility serving Chicagoland. The site, an automated warehouse and pallet-layer picking facility, consisted of over 60K pallets, and averaged 60-70 outbound loads per day. Our client needed support to ramp up operations, refining design + operational performance to meet the requirements of their clients who were accustomed to an incredibly high level of customer service.
THE CHALLENGE
Our client presented us with a list of tasks that needed to be completed to commission all systems and stabilize the new operation. Our task was to validate, organize, and execute on the litany of deliverables that would put the new facility on solid footing from which to increase operational throughput while exceeding customer expectations. Our client also needed guidance on implementing new processes and tools to better manage supply chain operations.
The primary impediments were identified early on:
The system design was very complex, consisting of an ASRS connected to the robotic layer pick gantry automated system of trolleys on electrified loops
The Warehouse Execution System (WES) that managed the automation via integration to the various control systems was unstable and buggy
The automation integrator contracted to manage the various system vendors was difficult to work with
High turnover amongst the Operations Team created operational knowledge gaps, and the Leadership Team was relatively inexperienced working with the new automated warehousing solutions
THE SOLUTION
Project Management: Our team led the validation, organization, and execution of the critical deliverables that were required to bring the new facility online and increase operational throughput to meet the customer demand.
Led daily Operations Calls, ensuring all project activities were aligned with operational targets
Created and maintained project reports including supply chain analyses and operational performance reviews (customer service targets, inventory management, pallet throughput and cycle times)
Prioritized project deliverables to optimize supply chain performance
Industry Expertise: We staffed the project with consultants who were familiar with the industry and were able to share best practices from experience in similar client engagements.
Served as a trusted advisor to Regional Operations leadership and corporate Supply Chain Solutions.
Delivered on-site, hands-on process improvement initiatives for Inventory Control and Warehouse Management, resulting in enhanced inventory data accuracy and pick-pallet cycle times.
Leveraged Lean/Six Sigma techniques to improve processes and resolve issues
Business Intelligence Expertise: We delivered Business Intelligence regarding business operations and project reporting.
Identified need for improved data to support operational decision-making process
Partnered with Automation and IT Teams to develop enhanced reporting, analytics, and dashboards
System Reporting – Improved product allocation and flow
Operational Reporting – Provided better insight into inventory management, order cycle times, and customer service metrics
Enhanced Dashboards – Enabled Operations teams to better understand real-time performance on the warehouse floor, increased speed of issue mitigation, and improved resource planning
THE OUTCOME
Our team successfully commissioned the new facility and increased its operational performance (to target) within the timeframe originally proposed, ultimately capturing cost savings and increased revenue for our client.
Fixed multiple automation issues with vendors to improve inbound (including rail) and outbound volumes to meet budgeted site volumes
Improved customer service level metrics via process improvements
Improved delivery turn-around (trucks off-loaded/loaded within contractual turn-times) to 98%
Increased pallets-picked (within required cycle time) from 30% to 70%
Captured learnings that the client has since applied at additional automated warehouses
Supported the on-boarding of new operational analysts (newly created role within Operations Team) to ensure continuity of improvements and develop on-site capabilities