Description
Cummins is a designer and manufacturer of power generation equipment, power systems, gasoline engines and custom power supplies. The European warehouse for spare parts is located in Mechelen (B).

Opportunities
The warehouse in Mechelen has the opportunity to expand into an adjacent building. This enables a more efficient operation and makes it possible to move back packing & kitting activities and stock, that are currently located externally. Groenewout was asked to develop a lay-out for the new situation and to advice on optimizing the processes.

Solution
To improve space utilization first the location types were optimized on SKU level, for example leading to smaller locations in the pallet area. Based on an inventory snapshot (including external stock) an analysis on the required number of locations per type was carried out, which was extrapolated into the future. This resulted in a new lay-out, including more space for receiving and including a new kitting and packing area. In parallel and feeding the lay out design, several sessions were organized to discuss and conclude on the optimal processes for receiving, putaway, picking etc.

Benefits

• Quantification of the required storage capacity per year
• Quantification of the maximum storage capacity of the facility
• A good plan for the new facility, both for the lay-out and the processes.