Challenge

A mid-market distributor of home goods needed help to identify distribution improvement opportunities and find creative ways to increase efficiencies and service levels across the B2B and E-Comm drop ship channels.

Approach & Actions

3PLR leveraged significant knowledge of CPG warehousing best practices and past project successes and followed a well-established and successful process of Discovery, Analysis, Solution Options Development, and Review & Approval with initiatives separated based on implementation speed and risk of interrupting performance of peak season. Design end-to-end solutions that integrate with existing warehouse programming and process flows. Determine ways to handle peak volume for Wholesale B2B and E-Comm, as well as rapid growth in the E-comm. Recommend layout, equipment, packaging process & materials, and picking process changes. Evaluate inbound, put-away and replenishment processes and implement best practices to increase throughput and efficiencies. Solution options should NOT include replacement of the existing WMS/ ERP system.

Results

Process changes improved replenishment efficiency. Product slotting and layout changes reduce space utilization from 97% to 73%, creating space for new products. Pack-out layout changes increased throughput by 100% for B2B and 150% for B2C with the expectation to avoid chargebacks and lost sales entirely.

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