National Supermarket Chain realizes $1.2M in Annual Benefits through Warehouse and Logistics Optimization

A major US grocery chain with over 2,500 stores nationwide.

$1.2M

benefits identified

20%

reduction in pallet jack accidents

Challenge

Our client was dealing with high order volumes and the current systems were not adequate to support this increased demand. This led to higher transportation costs, and safety risks caused by excessive manual labour and mechanical material handling hazards.

Discovery

Our team conducted onsite interviews and observation across the company’s 3 warehouses to gather information and implement quick wins during this Lean Six Sigma engagement. Additional long-term improvement opportunities were identified and validated by the client. A pilot implementation of these opportunities was conducted over the course of the year through the following projects.

Optimizing product locations in cold storage by analyzing product velocity and incorporating inventory best practices
Reducing logistics costs by optimizing delivery windows for high-volume products
Improving warehouse safety by creating new processes for loading pallet jacks, optimizing traffic routes and improving visibility around corners
Reducing unnecessary labour by optimizing pick paths