Ecommerce Retailer CASE STUDY
Our client was experiencing “hyper-growth” in membership and sales. This growth placed a strain on its supply chain, especially on the capacities of its DCs in Andover, MA and Brooklyn, NY. The client decided that satellite facilities or offsite storage was not the solution to its problems. Johnson Stephens Consulting assisted the client’s management team in a study of the supply chain and concluded that the DCs would be out of space within six months. JSC and the client determined that the requirement was for a new DC in Louisville, KY.
A 303,000 sq. ft. build was acquired by the client. JSC determined a hybrid pick solution, consisting of Kiva, three level pick module, and conveyance, was best suited for the facility. This solution provided the ability to scale the building vertically, which allowed the client to achieve a 99.9% fill rate. The new design resulted in significant cost reductions for the operation’s outgoing parcel costs. This cost reduction justified the project. Because of the automation and layout that the solution provided, the client’s operation attained remarkable labor productivity gains. These gains were further increased by a Phase II LMS project with JSC.
Extreme SKU level demand changes were driven by flash sales. The timing to have the building ready for the holiday surge was a pressing concern. More concerns were raised from the need to provide flexibility to move into the space division by division, finding labor to accommodate the seasonal business and can expand DC. Johnson Stephens Consulting helped the client develop a five year business plan with space and design layout considerations. JSC performed a technology assessment to analyze a variety of proven technology options and newer technology possibilities. Finally, JSC developed a significant training plan in conjunction with the client and the 3PL.