Supply Chain Consulting Case Study: Warehouse Consolidation with PFEP Implementation

DC Consolidation Case Study (1)-1

SUMMARY: An automotive supplier’s warehouse space and on-hand materials were growing exponentially as it received, processed, and stored material for future use. Without a defined inventory and replenishment strategy, its inventory uncontrollably increased from one to seven warehouses.

The client needed to identify right mix of on-hand SKUs in order to optimize material flow from a single facility (vs. the seven it currently operated).

• Parts damage due to storage issues
• Wasted use of new parts due to unavailable salvage parts 
• Lost time due to unavailable material
• Multiple storage points causing confusion and downtime

The client partnered with LeanCor to assess its material flow in order to:

  • Consolidate warehouses and reduce footprint
  • Increase production time
  • Decrease warehouse expedites

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