Warehouse analysis boosts ROI with automation.
We had the opportunity to partner with a small industrial manufacturer in NC to analyze their warehouse, order fulfillment processes and supply chain. This included an evaluation of the distribution center, shipping and receiving, pick-pack and packaging. Our findings identified that the lack of space was an issue in the warehouse and the order fulfillment processes were labor intensive with manual processes.
We were able to purge obsolete inventory which freed up space for all revenue generating SKU’s. We also barcoded the warehouse and order fulfillment processes, automated the interaction of their ERP with manifesting, and adjusted the sizes of the external packaging to ship less air. The ROI on the project is still being validated, but the projections include a reduction in staffing by 4-6 resources in the order fulfillment process. Projections also include cross functional training with other departments for improved staffing usage, succession planning, installation of a warehouse management system (WMS), and reworking the packaging process and data entry for reduced key strokes and errors. In transportation alone, there was an annual savings of over $50,000 based on package size changes alone. K-5 is able to compete in the industry by using solid processes and warehouse solutions. Call K-5 to understand how we can help.