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Feasibility study

June 16, 2021 797 Views

Description
Trendiy is a family business, dedicated to the production and supply of window decoration. Trendiy’s customers mainly consist of large retailers such as Intergamma in the Netherlands and similar shop businesses in Belgium, France, Spain, Italy and other European countries. There are around 70 FTE involved in the direct logistics process in the DC in Nunspeet the Netherlands. A part of the assortment contains products up to a length of 3.6 m.

Opportunities
The DC processes needed to be re-engineered to be more efficient, with increased pick and bulk location capacity and with a lower OPEX cost. This to allow the Logistic operation to be more future proof able to support Trendiy’s customer service and collaboration strategy. Trendiy asked Groenewout to perform a feasibility study to the required logistic concept. At the same time Groenewout was asked to identify quick wins in the current operation.

Solution
After data analysis and evaluation of a number of lay-out and process alternatives, Groenewout advised a number of lay-out out changes to include a more logical flow in the lay-out. The position and lay-out of the packaging area was changed. In addition, more pick locations were created allowing to delete the labor-intensive stock change process. Quick wins were defined and classified by their effort and effect. Groenewout was involved in start of the implementation of one of these quick wins regarding planning.

Benefits

  • OPEX savings due to FTE reduction, due to elimination of the stock-change process and shorter transport routes;
  • A more efficient logistic operation, with shorter lead times;
  • Estimated CAPEX regarding the required racking and MHE changes;
  • Overview of ready to implement quick wins.