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Warehouse Management helps food distributor bring distribution in-house to improve inventory integrity and customer service

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“We now have complete inventory integrity and accountability. We know exactly where to find everything and we can track the selections of each employee, which has helped improve productivity.”

Mike Sacco, VP, Logistics & Distribution

 

Solution Profile

  • World’s largest multiple protein providers to foodservice, military and retail
  • Sought to bring distribution in-house to improve inventory integrity and customer service
  • Selected Warehouse Management solution
  • Inventory accuracy rose to 99.2 percent
  • WM solution provider: RedPrairie Corporation

Quantum Foods
Quantum Foods is one of the world’s largest multiple protein providers to foodservice, military and retail, with a commitment to building customers’ businesses with top quality, value-added products. Quantum Foods provides custom menu solutions for leading national and regional restaurant chains, entrees for the U.S. Military, branded and private label programs for grocery retailers and club stores, and value-added products to convenience stores. These products are all distributed from a 300,000 sq. ft. distribution center on their campus in Bolingbrook, Illinois.

The Challenge
Quantum Foods was founded in 1992 as a portion cut steak provider for food service and the military. Until 2005, storage and distribution were handled by third party logistics providers. But as Quantum Foods expanded its services to add more products, including branded and private label foods, they found their third party providers did not supply the level of inventory accuracy and control Quantum Foods wanted for feeding their two campus production facilities while providing desired customer service levels. As a result, they decided to build a new temperature-controlled distribution facility on their campus, and bring distribution in-house.

To achieve the level of inventory integrity and customer service they desired in their new facility, Quantum Foods realized they would need a warehouse management system (WMS) capable of handling the unique needs of the food industry. They sought a solution provider with a high level of food industry experience and functionality as well as a brand name that would be recognized by their customers.

The Results
Quantum Foods opened their new DC in 2005 with the new WMS directing inbound, storage and outbound operations. The facility is 300,000 sq. ft. with 20,000 climate controlled locations, 5,000 ambient temperature locations, and a refrigerated dock. Approximately 5.5 million pounds of product is handled inbound and outbound each week in a single-shift operation. RF equipment is used to scan every case coming in or going out of the facility.

There was no increase in administrative personnel required to install the WMS system and inventory accuracy rose to 99.2 percent. In addition, the solution provider worked with Quantum Foods to improve the efficiency of selection operations and scanning of outbound pallets. As a result, partial pallet picking efficiency increased by 75 percent.

Quantum Foods leveraged their outstanding new facility to become a third party logistics provider (3PL) for their customers. The solution provider enhanced the Warehouse Management system to provide the third party billing this required, but no other changes were necessary for Quantum Foods to support their new 3PL business.

The WMS system allows Quantum Foods to receive, store and track inventory accurately by customer. It creates the invoice for services and tracks ownership throughout the process. They plan to roll out the WMS to their two campus production facilities in order to gain efficiencies in those operations as well. This will create a truly integrated production and distribution operation.

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is a Proud Member of the SCE Group of the Material Handling Industry of America (www.mhia.org/SCE)

 

 

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