$2M Annualized Savings Found in National Retailer Distribution Centre with Warehouse Operational Improvement

Our client is a national discount retailer and grocer in North America. Their warehouse services over 140 of their stores in Canada. The client was looking for warehouse improvements to remain competitive in the volatile grocery supply chain industry

$2M
Savings Identified in the First Year
~12-18
Case Per Hour

Challenge

Servicing over 140 stores, our client’s warehouse was extremely store-service centric, and was perceived as the highest performing warehouse in Canada; however there was tremendous opportunity for operational improvements. In order to remain competitive, this retailer requested a set of fresh eyes in one of their perishable distribution centers (PDC) located in the GTA. 

Discovery

Through an accelerated operational discovery, our team completed an intense 5-day initiation study of all of our client’s warehouse operations (450K sq. ft).  We interviewed key stakeholders, analyzed available data to understand root cause of underperforming areas and conducted on-site observational studies. Within 5 days, our team was able to deliver the following results:  

  • Conducted operational analysis with a focus on analyzing product velocity, SKU, forecast and other data sources to examine warehouse scheduling and loading across all three shifts 
  • Developed a portfolio of solutions comprising of 104 improvement projects across the warehouse 
  • Created a detailed implementation strategy prioritized and sorted into 54 unique opportunities, 25 of which our team have identified were most important and highest priority to begin and see immediate results 

Value Created

As a result of this engagement, our client realized the following benefits: 

  • $2M savings identified in the first year  
  • 12-18 CPH (Case Per Hour)  

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