Food Distributor Increases Capacity and Inventory Control

hneumann Blog, Uncategorized

A local Wholesale Food Distribution Center utilizes a cooler for storage of milk products, produce, and other perishable inventory.

As business continues to grow at an annual rate of over 10%, this operation is dealing with the challenges of increasing storage capacity, maintaining critical FIFO inventory control, and planning for future growth.

A decision was made to increase the size of the cooler and install a new pallet storage system. Western Storage and Handling analyzed the inventory mix and presented this customer with 2 alternative designs of the new expanded cooler. Each layout addressed the objectives of, 1) adding a minimum of 25% storage capacity, and 2) increasing the pick locations by 30%.

The selected design includes pallet flow rack to store the large quantity of fast moving products, drive-in rack for the smaller quantity of medium movers, and selective pallet rack for the small quantities of the slow moving inventory. This combination increased the pick locations by 33%, increased the total number of pallets stored by 25% and improved the picking efficiency dramatically by improving the pick path of warehouse workers.

As business continues to grow at 10% annual rate this distributor should be able to handle the growth within this sytem for 3 – 5 years.