Savings Without The Investment - Finding Cost Savings With Low Or No Capital Spending
Ralawise are business to business wholesalers of clothing with a wide range of sizes and colours. They break large shipments to supply customers who require smaller orders, right down to single item orders. Their customers tend to embellish the items for selling on, for example embroidering a company logo. Ralawise is a growing business with a growing SKU range, and were experiencing problems with returned items as well as delivered orders that were missing items. Much could be blamed on a failed WMS implementation. It was essential to improve the customer service to a very high level and then maintain it. The key objectives were to increase the accuracy of despatches, reduce number of people in the warehouse, reduce stock-outs not on genuine back order, and also to make a decision on what to do about the WMS.
Logistics Simulation used historic order data to analysis the product profile and was able to show no-cost and low-cost solutions for changing the pick walk sequence, the product layout, and the fast moving area. No cost solutions encapsulated savings from the existing warehouse and staff, and these savings were later realised on site as this was the chosen method. The low-cost solutions included recommendations for pallet flow racking, installation of a VNA slow moving area, and a possible installation of a second VNA area to generate new business.