Background

Pifco who market a range of electrical appliances including Carmen, Haden, Mountain Breeze, Pifco and Russell Hobbs were acquired by Salton Inc. Salton introduced their main brand George Foreman into the range and as a result sales in the past two years have increased 200%. In the meantime manufacturing in the UK has ceased and all products are now imported. The company already has extensive off site storage facilities but to increase efficiency and reduce handling decided to consolidate and centralise storage on the existing site at Wombourne in the West Midlands to accommodate the growth.

Activities

We measured the free available land adjacent to the existing warehouse, and determined a footprint and layout to maximise use of the land whilst providing logical integration with existing buildings, facilities and traffic flow taking into account both the slope of the site, ingress and egress. We investigated Salton’s forecast storage and throughput requirements and then the building height options and costs, also MHE and racking configurations and costs in order to identify the optimum height. Detailed site and internal layout options were prepared for client and agreed, these concepts were then passed to client’s architects to progress the build and equipping. Invitations to Tender were prepared for both racking manufacturers and mechanical handling equipment suppliers. Negotiations took place with prospective suppliers, orders placed and commissioning timetables agreed.

Outputs

• The design and justification of a clear cost effective warehouse solution to meet Salton’s future requirements.
• Provided for phased future extension of the warehouse.
• Successful negotiation of supply of racking and mechanical handling equipment significantly below original cost estimates
• Support of the fast track build programme, completed on time and within budget

Results

• The dependability which was being sought
• Fewer higher performing suppliers in the shipping areas of the supply chain
• Full visibility of service performance which enhances communications and problem resolution with suppliers
• Significant cost savings without impacting or compromising service performance
• Coached and mentored staff, who are now motivated to further investigate the on- going development of the supply chain