Warehouse assessment at DecoArt

DecoArt is a manufacturer of acrylic paints and craft supplies. The company has a manufacturing site and a distribution center Kentucky, from where they ship products to distributors and consumers. Luis performed a warehouse assessment for DecoArt at their location in Danville, KY to investigate the productivity of the receiving, put-away, storage, order selection, staging, and shipping processes. The objective was to identify opportunities to reduce operational costs and improve service performance in preparation for marketing strategies that will increase online orders.

As part oft he project, Luis took operational times, document processes, and gathered reports from the Warehouse Management System. Specifically, he looked into:

  • Order profiling
  • Warehouse layout
  • Supply chain coordination
  • Productivity of warehouses processes
  • Order picking technologies
  • Inventory management
  • Financials parameters
  • Customer service
  • Quality control of logistics processes

Each area of analysis was evaluated using data driven KPIs such as order fulfillment rate, demand ordering patterns, suppliers service, inventory turnover, and line orders shipped per working hour. That way, we could identified and prioritize opportunities of improvement as well as external factors. For example, DecoArt business is the diverse packing, labeling, and shipping requirements of clients, which made standardization challenge for the operation.

Based on this assessment, Luis provided short and long term recommendations to improve the current performance of the warehouse operation. The improvements targeted mainly cycle times, order fulfillment accuracy,  working capital,  material handling costs, workforce performance, and space utilization. As a follow up, Luis designed a material handling solution and process for a new channel of fast items to be serve their online orders.

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