Our client challenged us to improve the warehouse’s pick/kit to line processes and to ensure both cost reduction and lead time enhancement would be delivered along with improved processes.
One of the world’s leading IT companies requested JUSDA Europe to optimize their warehousing & logistics processes by reducing the operational costs and enhancing the lead times of the respective processes. This task was to be achieved in six months.
Client’s team identified improvement opportunities for increasing productivity in relation to material picking and kitting, to respective work orders and in the case of residual material returns into the racking system. JUSDA also proposed to improve the warehouse management system, by developing a new pick to line logic.
Based on our experience, we wanted to create and submit a new pick/kit to line processes aligned with all other warehouse related processes and thus deliver a complex solution.
Warehousing expert at JUSDA
Significant improvements were already achieved after 4 months. Pilot testing revealed that the picking process was reduced by almost 50% in comparison with the previous.
Kitting process improvement enabled us a reduction of headcount, 3 employees per shift (3 shifts/day), and we obtained a significant improvement of residual material returns which decreased by 70%.
Besides picking and kitting processes, we were also able to increase order accuracy above 99%.
Overall cost savings in relation to implementation of optimized processes were $125K per annum.