Challenge
Multi billion company growing 40% year over year during pandemic period decided to expands its warehouse network and add a fulfillment center in the Central Europe. The FC was supposed to have a weekly capacity of minimum 1.1 million orders. The main project limitation was timeline and availability of resources since the company made its decision in March and targeted GO-LIVE before X-mass peak period the same year.
Actions
To address its capacity challenges, the company embarked on an ambitious project to open a new 37,000 square meters Fulfillment Center within already existing location. The key actions undertaken by our team included: Strategic Planning – comprehensive analysis of expected product flows was conducted to ensure new FC design and process would meet targeted criteria within the available building layout. This involved analyses of order profiles, service level targets, and current company processes. Equipment Selection – The facility was equipped with MHE tailored to the process and at the same time available within strict project harmonogram. The FC was equipped with flexible picking racks, soft-belt conveyor system, and packing stations ahering company guidelines. Project Management – Our expert managed the opening process on-site in order to control execution of plans and at the same time conduct team building and training. Delivery of this project required constant stakeholders management across Client’s Supply Chain, Operations, and Commercial functions.
Results
The project was completed on time. First in-bound delivery was received by the newly opened Fulfillment Center in October and first Client’s customer order was fulfilled in November. The total weekly capacity of opened building was estimated at 1.2 million orders weekly with full-staff working on 22/7 schedule. Before the Christmass peak time 800 people were employed and fully trained. The facility was ready to take in following 140 employees in case additional processing power would be needed. Existence of this FC within Client’s network enabled business growth and decrease in customer delivery time by 1.2 days versus previously available fulfillment possibilities. FC went through its first peak time without missing a single day of operation and keeping the score of zero accidents within first 60 days despite working on non-standard equipment, with completely new staff, and without previously set-up processes.
Short summary
Multi-billion e-commerce retailer decided to open fulfillment center. Within 8 months 37,000 square meter FC was created. As a result of our strategic planning, rigorous equipment selection, and project management, Client met their goal to have a capacity of 1.1 million weekly orders and employ 800 associates. The facility enabled business growth and reduced customer delivery time by 1.2 days.