INTERNAL LOGISTICS

CASE STUDY: internal logistics optimization
Industry:
Leading Snack Food Manufacturer
Company Size:
1,000+
Project Location:
United States
Problem Statement:
Our customer has experienced tremendous growth over the past 10 years, but struggled to effectively adjust the operational organization to drastically changing customer expectations. Instead of revamping their operational processes, headcount, staging, and storage capacities had been significantly increased to cope with growing complexity. We were hired to rapidly streamline all internal logistics processes to increase agility and to significantly reduce costs.
STREAMLINERS’ Approach and Solution
Meeting:
Definition and rough quantification of objectives
Deep Dive:
Assessment of all internal logistics processes to reveal high impact streamlining and savings potentials
Hypothesis:
Consolidation of 3 external warehouses into 1 Central Logistics Center, cross-training of shopfloor staff and redesign of material flows and internal logistics processes will reduce headcount and material handling costs.
Project:
1 consultant
16 weeks
Deliverables:

External warehouses consolidated (new 11,000 pallets high rack)
Synergies lifted and headcount drastically reduced
Excess rental trailers for staging and storage eliminated
Bottom Line Impact:

Headcount savings of >$0.7 M (-43%)
Warehouse rental savings of >$0.5 M
Rental trailer savings of >0.2 M

Consolidation and Headcount Reduction

 

Fees vs. Bottom Line Impact