With a plan to double the number of SKUs in a catalog for non-profit organization fund raising, this nationwide distributor of gift items selected Distribution Design to assess the current DCs and their respective capabilities to handle the higher volumes, especially during the very heavy peak periods in the 4th quarter.
Distribution Design defined the Key Operating Characteristics for a five-year planning horizon. Each DC will ship hundreds of thousands of units a day during peak months in the design year, and 100% of the picking is individual units (no full case picking). Distribution Design provided a Conceptual Design for each facility, and the design included significant conveyor and sortation capabilities, systems functionality, staffing requirements, and costs. Using the recommended concept, the client will need about 50% fewer associates during peak months compared to using their current methods of operation.
As part of the strategic evaluation of the company’s options, Distribution Design also completed a conceptual design of a consolidated distribution center that would be more geographically centered than the existing sites. This design evaluated different options for automating the high volume and very intensive picking processes for individual items picked each day.
In a separate project, Distribution Design structured and led a selection process for the client’s evaluation of outsourcing as a strategic option.