The Project: "To review the operating efficiency of a high tech., fully automated storage and retrieval system, identify areas for improvement and assist in implementation"

Background

The client had set up a European Distribution Centre at Temse, near Antwerpen, and had installed a fully automated storage and retrieval system. The operation had failed to meet expectations in terms of cost reduction and the warehouse was full even though it was only operating at 60% of capacity.
Manpower costs had actually increased

Activities

We initially benchmarked the activity with those of the competition, which confirmed the low performance.
We then reviewed the operations and identified potential efficiency improvements. This included improvements in the put-away system, coupled with a one-off manual consolidation, which released a further space capacity.
A manpower planning model was set up to analyse the shift working system, workflows ancillary activities.

Outputs

• The design and justification of a clear cost effective warehouse design to meet the client’s future requirements and its accommodation on a restricted site.
• Provided for phased future extension of the warehouse.
• Support of the fast track build programme – completed on time and within budget

Results

• According to the Client one of the major benefits was that their management team actually understood how the automated system worked and how to modify the system themselves in order to improve efficiency. “We not only gained efficiency improvements but also the knowledge”.
• An 18% reduction in manpower costs by working more efficiently.
• A 30% increase in storage capacity