Warehouse Consolidation and Design of a Multisite Logistics Network

Client
Confidential
Sector
Manufacturing
Expertise
  • Logistics and Supply Chain

CONTEXT

Our client in the powersports industry aimed to introduce a new range of modular products and double its production. 

CHALLENGES

To support this increase in volume, the company shifted its manufacturing strategy from a single-site model to a multisite approach.

ASSIGNMENT

Our customer asked Merkur to develop an optimized multi-site logistics strategy.

The company had three small, inefficient, and over-capacity warehouses located near the production sites. With the increase in production, this strategy became untenable as it would require a further increase in the number of warehouses.

RESULTS

Growth Increased logistics capacity enables production to be doubled

OBJECTIVE AND ACHIEVEMENT

Increase production capacity a solution that optimizes cost and performance

  • Determine the required warehouse area to centralize component storage and optimize space utilization.
  • Define an inter-site logistics strategy to deliver components to the main factory from the warehouse and the second production site.
  • Determine current issues and waste in warehouses and the logistics network.
  • Define the ERP requirements (inventory status and location, planning, stock in transit, etc.)
  • Define and identify the logistics master data required for the ERP (locations, material groups, and storage capacities)

TOOLS AND TECHNIQUES

Lean Manufacturing

Warehouse Design

High-Frequency replenishment

KANBAN

Business process mappings

ERP requirements

Our customer, a long-standing partner, undertook a rapid strategic expansion requiring an accelerated transformation of its production and logistics. The objective was to optimize costs while ensuring high operational efficiency. 
Mohamad Kabbara

Mohamad Kabbara

Operational Excellence Consultant

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