Warehouse Turnaround

Purpose: Rapid Intervention to Stabilize Underperforming Warehouses

Turnaround is an acute need to fix a warehouse operation that is likely failing in many ways, such as. . .

Low workforce productivity and morale.
Late order shipments and increasing backorders.
Transaction errors in receiving, order fulfillment, and shipping.
Increasing inventory inaccuracy.
Warehouse congestion and space constraints.

Approach: Deploy resources on-site to quickly identify failure points and implement an action plan

Evaluation & Solution Development: Warehouse turnaround begins with management interviews, and a process and IT systems-use walk-through and physical inspection of the warehouse and equipment, followed by a data request and analysis. 3PLR consultants analyze inventory volumes and velocity, storage requirements, product slotting, layout configurations, material handling, process integration, cycle time and workforce productivity.

Implementation & Change Management: 3PLR deploys resources to identify gaps and critical factors and define corrective actions and an implementation plan. Consultants work on-site with managers, supervisors, and associates for multiple weeks or months based on the anticipated issues and facilities scope to implement change as a turnkey service. Change management involves process re-engineering and training, and kaizen events to engage associates in solution development and implementation.

Deliverable: Turnkey effort to identify gaps, implement corrective actions, and measure results

The project would take a “hands-on” approach to evaluation, solutions development, and implementation to. . .

Re-engineer and standardize processes and IT systems use.
Conduct Lean training and kaizen events for change management.
Increase warehouse material flow and product throughput.
Optimize inventory location to reduce travel time.
Improve workforce productivity to reduce warehouse cycle times.
Maximize utilization of material handling equipment (MHE).
Improve inventory availability to reduce order backlogs.
Coordinate order management and wave planning.
Align workforce planning with order demand.
Implement operational KPIs for supervision.
Share real-time order status and KPI information with associates.
Report on performance improvement and continuous improvement.

Ready to optimize your strategy?

Contact 3PLR or schedule a call to discuss your company’s needs and find the right solution to optimize your operations.

Schedule a Call

Case Studies

Warehouse Turnaround | Case Study 1

Distribution Center Turnaround – A large supplements division of a $53B global CPG company found itself in big trouble entering Q4 with an under-performing central DC, which was backlogged, missing shipping schedules, messing up orders to major retailers, and creating a huge risk of missing the year-end revenue target by 35%. The DC was shipping 25% of expected daily volume with low inventory accuracy at arrival. The client needed to turn around the failing DC, clear up the backlog, and hit the revenue goal within 2 months.

Warehouse Turnaround | Case Study 2

Distribution Center Transformation- A $360M discount retailer replenished regional stores from a 500ksf distribution center. With thin retail margins, profitability depends upon highly efficient operations. The company adopted a JIT model to sharply reduce inventory on-hand, but throughput was insufficient to handle the volume, resulting in a highly congested facility that ramped up costs, turned profitability negative, and left stores with bare shelves. It needed expertise and hands-on support to turnaround the operation.