Sensata: a warehouse re-location project in the greater area of Munich, Germany

Luis was helping us tremendously at starting up new European distribution with a lot of adapted logistic strategies driving substantial changes in a multi-language cultural warehouse.

Filip Degroote, Senior Director of Global Logistics, Sensata Technologies

Sensata Technologies is a world leading supplier of sensors, electrical protection, control and power management solutions, serving industries including automotive, aerospace, agricultural, construction, electrical, marine, semiconductor, telecommunications, appliances, and air conditioning. It has robust a supply chain with operations in 12 countries within the Americas, Europe, and Asia.

Luis had the opportunity to participate in the relocation project of the Sensata European distribution center. The relocation project required the coordination of several functional areas of the organization such as operations, facilities, information technology (IT), customer service, and commercial. Luis worked closely within the operations team to identify opportunities of improvement of current processes and make of the new operation a world class facility. His assignment was developed on-site and had four phases: data collection, time study, assessment, and process improvement.

  • The data collection phase consisted of interviews to personnel of multiple function areas, accessing reports of the information system, taking measurement of the warehouse, performing cycle counts, investigate customer complaints, the review several financial reports, and gathering information such as technical specifications of equipment, safety requirements in the European context, CAD files of the facilities, work instructions and documentation of the process.
  • The time study was used to establish a productivity baseline for current operation and establish priorities in terms of which processes will benefit the most from process improvements efforts. It encompassed  receiving, picking, packing, and shipping processes. Moreover, this exercise served as a pilot to update productivity measures in other sites. The templates, methodology, and registers were adapted as a standard for other Sensata distribution sites.
  • The assessment evaluated the distribution center operation from two points of view resource management and customer experience. Specifically, Luis investigated indicators such as on time deliver, quantity and condition of shipped material, active customer communication, cartons process per working hour, overtime hours, customer returns, service to internal clients, deviations from procedures, workforce performance, inventory accuracy, material handling costs, space utilization, inventory turnover,  suppliers accuracy, equipment reliability, traceability of material, and safety and ergonomics.
  • Based on the assessment, Luis worked with the operations team to implement a series of process improvements in the current facility and to produce a detailed design of the new facility, which included the layout (CAD and 3D modeling) as well as the optimization of storage and item allocation policies. The effort involved the use of techniques such as 5s, wasted time analysis, standard process, division of work, visual management, theory of constraints, forward-replenishment storage models, and Kaizen. Including these recommendations, the facility started operations in June 2018.
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