Supply Chain Logistics

Daniel Penn - Case Study

Distribution Supply Chain Logistics: Warehousing

A high technology manufacturing facility located in Mexico was having significant problems meeting customer delivery dates. Daniel Penn Associates was asked to perform an assessment of their warehousing and logistics operations and implement improvements that would satisfy customer delivery performance.

The scope of the project covered such functions as materials management, purchasing, receiving and receiving inspection, stock locating, inter-plant transfers, transportation, manpower loading, supplier integration, inventory replenishment, and reorganization.

To address the problems and achieve the client’s objectives, we implemented a number of corrective actions including:

  • Redesigning the receiving and inspection process
  • Developing a staffing matrix for warehousing operations based on workload and performance standards
  • Consolidating three warehouse operations into one
  • Establishing transportation runs and frequency between plant and warehousing operations
  • Establishing materials and purchasing replenishment processes
  • Implementing accurate inventory transaction and tracking solutions
  • Redesigning the materials flow process between warehousing operations in the US and Mexico
  • Designing and implementing a warehousing management reporting system for tracking performance and performing root causes analyses