Warehouse optimization (new lay-out)

January 14, 2019 747

Description

ELHO has now been developing, manufacturing and selling flower boxes and flower pots for 35 years. ELHO is a market-oriented organization and is able to respond adequately to needs of customers, with her own modern injection molding factory. Products are sold to shops, food chains, Do It Yourself and garden centers.

Opportunities

Products of ELHO are delivered with strong peak in  the spring season. For two years the logistic organization has not been able to handle the demand to fully satisfactory of the sales department and customers although all products have sufficient stock during spring season.

Solution

A new lay-out is designed for the picking and packing area, with use of following logistics principles:

  • Distinguish fast movers from slow movers;
  • Use location numbers for Pick- and Bulk locations;
  • Separate the flows for incoming and outgoing products.

Outsourcing the logistic organization to a LSP is not recommended based on an operational costs calculation and quality considerations.

Benefits

Pragmatic advice enables ELHO  to handle peak of outgoing shipments in spring season:

  • Within existing warehouse;
  • With limited investment in hardware with a simplified process, that allows handling peaks with additional workforce.

 

 

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50 years of experience

Consulting firm with over 50 years of experience.


European database

Availability of a European logistics database with benchmark figures on transportation and warehouse costs.


Network design

Full scope expertise on network design, as well as warehouse design (conceptual layout, logistics - and storage equipment) and logistics building design (engineering and investment calculations).


Implementation support

Ability to support implementation of new logistics concepts (70% of Groenewout revenue is with existing customers in follow-up/implementation projects.


Extensive knowledge

Extensive operational knowledge, hands-on, pragmatic and bottom-up approach.


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