Picture

"Improving manufacturing and distribution operations since 1958
More than 800 projects completed throughout North America, Europe, and Asia"

About SCG Training Books/Publications Consulting Services Contact Us Links

Case Studies


Business: Supplier of Hand Tools and Accessories to Industrial Customers

Nature of Work or Scope and Results

One of the largest tool distributors in the U.S. was operating from three individual warehouses, which were located in the midwest. The products were tools ranging from small items (e.g., allen wrenches and drill bits) to large awkward items (e.g., large air compressors and tool chests). The company had previously lost one floor of one warehouse and the lessor was discussing the potential for reducing their space even further. The client company's telephone marketing operation was based in Cincinnati, and it was decided to consolidate the midwest warehouse operations with the telemarketing operation. The telemarketing operation was located in the back of one of their suburban department stores, so a totally new facility was needed.

SCG helped the company locate several buildings in the Cincinnati region that could be leased. SCG was then engaged to assist the company in deciding which building(s) to lease; layout the warehouse/distribution center; analyze and determine the necessary optimum materials handling equipment; and write purchase specifications for the material handling equipment and storage media for the warehouse. SCG then helped the company's purchasing personnel plan and schedule the installation of equipment.

To size the warehouse, SCG physically inventoried the material in the three midwest warehouses, sampled the cubic information for specific part numbers, and evaluated the inventory as to quantity and velocity. Using this information, SCG calculated the total amount of storage needed and stratified the inventory to identify the volume for each type of storage (bulk, forward, reserve, etc.).

Since completing the original project, SCG has completed two additional projects at this distribution center. One project involved definition of the warehouse management system and selection of the vendor. The other project dealt with the expansion of the warehouse to meet the 3- and 5-year plan.


















To Top

About SCG Training Books/Publications Consulting Services Contact Us Links

Picture