Case study:

Operational Audit & DC Design

Leading Brand for Medical Equipment and Supplies

Background & Brief

The client provided a range of medical equipment and supplies to the health care industry. Their warehouse had recently been extended with the addition of a high bay, high density storage unit and additional loading dock and process space. The warehouse employed some 40 personnel to receive, identify, store, pick, pack, and dispatch approximately 2,500 “made to stock” SKUs. Despite the investment, the operation was still suffering issues relating to: the time taken to pick orders; the accuracy of order picking; the pick face replenishment process; stock rotation and turn; and warehouse layout and stock accessibility.

Project Approach

SCALA chose to tackle the project with a five-phase approach – these were as follows:

  • Phase One : Audit and mapping of current activities, processes and material flows
  • Phase Two : Initial analysis and appraisal of alternative layout and process options
  • Phase Three : In-depth modelling and analysis of layout and process options
  • Phase Four : Identification of the best solution options within current constraints
  • Phase Five : Provision of detailed improvement plan and recommendations

Benefits & Results

SCALA quantified the current warehousing operation to establish baseline efficiency levels by compiling work standards of elemental warehouse operations and comparing them against benchmark standards. This work highlighted the key areas for improvement and resulted in a detailed plan containing the following:

  • Revised layout plan
  • Implementation of RF technology
  • System directed putaway
  • System directed pick face replenishment
  • Pick by HHT by order
  • Productivity review and measurement of performance
  • Identification of a potential 15% improvement in productivity

Final Outcome

The client was left with a clear development plan to address their underlying operational issues and a KPI reporting system to enable the effective performance management of the facility.