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Multiple Carton Flow Solutions Generate Sweet Savings for Candy Wholesaler

(Download this casestudy in pdf format)

Benefits to Customer:
  • Pick Rates increase 35%
  • Labor costs decrease
  • Increase space utilization adds 1,000 SKU’s
  • Inventory quality improves

Situation
A New England candy wholesaler was stretched to the limit servicing their grocery and
convenience store customers. Even with 70,000 square feet of operations spread over
three facilities the wholesaler’s operation were strained handling over 12,000 items and
continuously handling new product extensions. The challenge was to increase productivity
to handle surges in order activity and maximize space utilization to handle more
inventory and allow room for growth.

Solution
The candy wholesaler worked with a consultant to review several options. It was decided
the most cost eective solution would be to reorganize their current facility and provide
order picking solutions to meet the unique needs of each area. This project required
reconfiguring four major product lines.

The Grocery Area was given a major overhaul. A three level pick module was constructed
with carton ow installed on the oor level to maximize order picking eciency. The
second and third levels were set up for pallets to maximize storage. For the Cigarette Area
a specialized front pick, floor level carton flow system was installed to handle the large
number of each picks. A layback design was implemented to ensure easy access to the
product increasing pick rates. The Candy Line was retrofitted with new carton flow which
dropped into the existing structure providing exibility and improving pick rates. Mobile
custom Flow Racks were engineered for the Dairy Line. This eliminated double handling
of the product reducing labor costs.

Results
Upon completion of this project the candy wholesaler has seen pick rates increase
35%.The company has been able to handle an increase in sales activity and add a 1,000
new SKU’s to their warehouse while also decreasing their labor costs. Additionally all
inventory items are now rotated on a FIFO basis minimizing write os on their perishable
items.

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