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 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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