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Client Profile: Warehousing Case Study


  • The client had multiple warehouse facilities located across North America, supporting their recycling centers
  • Inexperienced operators and managers, focused on current shift operations only, with no direction or plan for future needs
  • ERP system upgrades caused loss of visibility to inventory receipt dates, making FIFO activities nearly impossible for the warehouses
  • Multiple bottlenecks in re-supply activities to processing center resulting in frequent warehouse operator overtime
  • Network warehouse cycle count accuracy below 75% and monthly count completions below 50% of plan
  • Warehouses were at various space capacity levels, up to nearly 200% of designed capacity and congested with slow moving and obsolete (SLOB) materials

Services Provided

  • Network Capacity Planning
  • 5S / Layout Optimization
  • Production Planning and Scheduling
  • Tools to work with ERP system
  • Management Operating Systems
  • Data Analytics
  • Leader Standard Work


  • Created Daily Directional Setting (DDS) meetings for each warehouse and coached managers on Leader Standard Work
  • Augmented ERP reports to provide additional data, allowing for simplified FIFO scheduling and material picking at the warehouses
  • Performed task analysis on re-supply activities, eliminated NVA tasks and adjusted staffing schedules to improve performance and decrease OT
  • Modified cycle counting schedule and trained operators on inventory accuracy levers
  • Reviewed warehouse footprints and material flow including network optimization activities to free up space at warehouse and get SLOB materials to correct processing centers


  • Routine warehouse overtime eliminated
  • Monthly cycle count completion at 100% across network and inventory accuracy above 99%
  • Network SLOB inventory reduced by 40 – 50%. Forecasting now highlights future potential SLOB for mitigation activities
  • All warehouse pick schedules are FIFO-based and understood by operators
  • Warehouse space capacity improved by over 50% at one location, over 10% across network

The most valuable tool for myself would be the DDS at the visual board. It is a great tool for communicating to my team. Every morning we have our meeting, and the team knows exactly how the day is going to go.”

- Warehouse Manager