Supply Chain Consulting Case Study: Warehouse Consolidation with PFEP Implementation

SUMMARY: An automotive supplier’s warehouse space and on-hand materials were growing exponentially as it received, processed, and stored material for potential future use. As a result of lacking a defined inventory and replenishment strategy, the inventory increased from one to seven warehouses. The client needed the right mix of on-hand
SKUs in order to optimize material flow from one warehouse instead of the seven it currently operated.

The client was also challenged by:
• Parts damage because of storage issues
• Usage of new parts due to salvage parts not being available
• Lost time from material unavailability
• Multiple storage points causing confusion and downtime due to lack of
parts

The client partnered with LeanCor in order to assess material flow and reduce production time losses (due to parts shortages).

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