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Warehouse throughput improvement

Time study and productivity analysis helped achieve higher throughput for a large paint manufacturer.

  • Increase in productivity by 15% with slotting optimization
  • Throughput handling capacity increased by up to 45%
  • Reduced operating cost per unit volume up to 10%
  • Detailed analysis and recommendations across processes and technology

One of the major paints and chemicals manufacturer clients faced challenges managing their warehouse operations during peak periods. With a 20% YoY forecasted growth in sales, the client wanted to optimise their operations for higher productivity without investing significantly in automation or infrastructure. One of the major issues was around higher process cycle time and vehicle turn-around time with manual inbound and outbound operations.

With a focused approach to improving the process cycle times and thereby throughout and productivity, our experts started with an on-floor process study to understand and measure each granular activities cycle time and observed gaps. With our unique and proprietary video analysis method, cycle time and productivity were measured and analysed compared to industry standards. Improvement areas were identified across process, design, and technology with the constraints such as no significant additional investments for automation or business applications. We were able to provide implementable recommendations to the client with different degrees of investment and cost-benefit with ROI. Our experts designed the best slotting method, which did not require any additional investment other than re-slotting, which showed a direct 45% reduction in travel time, a 15% improvement in picking TAT and a 5% reduction in operations cost. Overall recommendations across the layout, WMS, and to-be processes helped our client to improve overall inbound and outbound TAT by up to 50%, with significant improvement in throughput and productivity.

With as-is process diagnosis and to be recommendations based on access and design phases of the consulting engagement, the following key deliverables were provided:

  • As-is process mapping and key processes cycle time study (Video analysis)
  • Order profiling and data analysis for slotting optimization
  • Order profiling and data analysis for slotting optimization
  • Up to 15% improvement in overall throughput
  • Multiple scenario-based recommendations and respective cost benefit analysis

Cycle time measurement based on the video analysis tool provides the organisation with actual on-ground operations view rather than a system timestamps-based study, which might not show the accurate picture.

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