A leading national company in the tooling distribution sector, experiencing significant operational growth, recognized the need for a new operating model to optimize warehouse inventory, reduce logistics costs, and enhance operational efficiency.
The challenge
To achieve these goals, it was essential to develop a more efficient management system capable of minimizing waste, reducing order fulfillment times, and maximizing space utilization—all without increasing fixed costs.
The solution
The aBCD Consulting team adopted a structured approach, starting with an in-depth analysis to identify inefficiencies and improvement opportunities:
Detailed mapping of logistics and operational flows:
all processes were analyzed, including goods reception, storage, shipping, and the evaluation of different storage equipment (racking, mezzanine, and automated warehouse systems).
Space utilization assessment:
the warehouse operated at over 95% capacity, with many obsolete items reducing available storage space. This led to additional costs and slower operations.
ABC analysis of SKUs:
a stock turnover analysis revealed inefficient inventory allocation. Many low-turnover products occupied prime locations, while high-turnover items were harder to access, increasing picking times and costs.
Identification of operational inefficiencies:
Excessive picking times
due to non-optimized retrieval paths and ineffective use of automated storage areas.
High frequency of unnecessary movements,
with a large number of fragmented picks impacting productivity.
Above-average logistics costs
caused by inefficient inventory and space management.
Results
Thanks to aBCD Consulting’s intervention, the company achieved tangible economic benefits:
Reduction in warehouse costs:
available warehouse space increased by 15% through the disposal of obsolete items and the reallocation of stock.
Reduced fragmentation in picking activities:
the number of bulk orders to automated warehouses decreased from 8 to 2, with a more efficient and streamlined management process.
Increase in operational productivity:
the number of items picked per bin in automated warehouses doubled, improving picking productivity by 35%. The reorganization of the layout and inventory rationalization helped reduce annual logistics costs, improving return on investment without increasing fixed costs.
If your company’s goal is to optimize operational efficiency and increase profitability,
what you need is aBCD Consulting’s warehouse logistics cost advisory service.
