Consolidating warehouse network

24-Oct-2016 05:23 by 4 Comments

Consolidating warehouse network - M adultwap

Discuss the latest trends and solutions across the supply chain management landscape.Consolidation has been traditionally looked as a mechanism to bring in economies of scale.

A number of package vendors indeed address this need by providing a multi-WMS modeling capability through their products.

I have seen interesting words been used to describe such a collocation like "n WMS".

While such products do provide foundation to streamline processes while minimizing technology sprawls, interesting new practical problems crop up in this equation.

Of late, organizations that operate across geographies are investing to standardize processes, execution models and technology in the warehouses.

The context of warehouse processes and information resident in there, has changed in the supply chain architecture.

We played a vital role in the success of the overall warehouse consolidation program through the early identification of excess inventory and the efficient allocation of new production to the proper location based on the warehouse cutover schedule.

Dramatically reduced the average number of intra-network inventory moves from just over three to one point five.

This allowed the client to proactively plan inventory moves, secure equipment and resources based on the inventory move plan, and identify customer centric inventory to be placed in the new facility to stop non-essential inventory production signals to the manufacturing plants.

The overall solution was designed with the understanding that the client at some point in the future may need to re-activate the program structure to consolidate facilities in another area of the country.

Warehouse level information now is being "consumed for efficiency and better customer response" correlating to order/demand and inventory position information in more real time.

Consolidation programs that embed process, technology and operational standardization therefore can greatly simplify journey towards this "enhanced warehouse awareness" in their supply chain and help differentiate the fulfillment execution.

The question is: How do you consolidate eight warehouses into a single facility over a fixed period of time without negatively impacting customer service and dramatically increasing inventories?