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Feasibility study logistics concept

November 07, 2018 1765 Views

Description

Univeg group is a worldwide supplier of fresh produce, active in the fields of fruit & vegetables, convenience goods, flowers & plants, transport & logistics.

Opportunities

Univeg recently opened a new warehouse in Sint-Katelijne-Waver (BE) to run the operations for their clients Ben Fresh and Carrefour. Univeg questioned the warehouse layout, product slotting and both in – & outbound strategy as they felt productivities and utilization rates were poor. Furthermore, Univeg will be expanding their product portfolio by 185% on very short term (3 months). As timing was critical project lead-time had to be limited to 2 weeks, so that Univeg could start their tendering phase without delay.

Solution

  • Optimization of current pick – & replenishment activities in 3 different temp zones.
  • High level review of possible logistics concepts to facilitate product portfolio expansion.
  • Advice on feasibility of each concept based on capacity requirements.
  • High level analyses of order profiles to improve slotting strategy (make it fit).

Benefits

Deliverables include:

  • Dynamic model providing a side by side comparison of different logistics concepts based on storage capacity and replenishment activities. Variables included:
    • Inventory levels (# days).
    • Location sizes.
    • Peak factor.
    • Dedicated warehouse floor space for other activities.
  • Model outcomes included:
    • Fit/no fit decision based on storage capacity.
    • High level advice on slotting strategy (location sizing) to optimize product availability in pick locations and minimize replenishment activities.
    • High level overview of replenishment activities for given time period.