The client is an Italian company, a leader in the commercialization of hotel supplies and catering equipment.
With a long history in the industry, the company has distinguished itself for the quality of its products and customer service, but it identified areas for improvement in warehouse management to increase operational efficiency.
The challenge
An internal analysis revealed inefficiencies in warehouse flow management at the client’s main site. The main issues included:
High value of unhandled goods
(12% of the total warehouse value, compared to the target of under 5%).
Unstructured receiving and order preparation processes,
with excessive reliance on the individual experience of operators.
Lack of identification codes on all products,
reducing productivity and increasing allocation and picking errors.
Absence of a logical system
for warehouse mapping and advanced technological tools.
The solution
To address these issues, an action plan was developed based on two main strategic proposals:
1. Movement using Radio Frequency (RF)
Objectives:
- Logical warehouse mapping to optimize routes and reduce picking times.
- Introduction of radio frequency (RF) terminals to guide operators in allocation and picking operations.
- Reduction of error rates through better traceability and verification.
Expected Benefits:
- Reduced operator training time: a new hire can reach 90% of productivity within just three weeks.
- Decreased turnover due to a more structured and less stressful work environment.
- Positive economic impact with a reduction in recruitment and operational costs, estimated to exceed €200,000 over three years.
2. Advanced Reporting for Purchasing
Objectives:
- Creation of reports to monitor slow-moving items, identify insufficient minimum stock levels, and improve coordination between purchasing and warehouse teams.
- Implementation of periodic reports to effectively manage the product lifecycle and reduce the amount of obsolete goods.
Expected Benefits:
- Significant reduction of obsolete items, with estimated savings of up to €300,000.
- Improvement in stock quality and product catalog.
- Enhanced service quality through better daily scheduling.
Results
The implemented solutions allowed the client to:
Increase warehouse staff productivity.
Improve traceability and flow organization, drastically reducing errors.
Decrease the value of unhandled stock, enhancing overall efficiency.
Create a foundation for future optimizations through the integration of advanced technologies.
while the integrated approach allows for action on multiple levels.
