Assess aspects of a distribution center facility for their potential to optimize efficiency
In this project, you will demonstrate your mastery of the following competency:
Assess aspects of a distribution center facility for their potential to optimize efficiency
Scenario
You have recently been hired by AmeriWidgets, which is looking to optimize efficiency in its distribution center facility. The company has recently expanded its number of stores in the region and has acquired a new 95,000-square-foot distribution center. Although its processes have worked in the past, the company has noticed a decline in efficiency during recent months and has asked you to conduct an analysis and provide a recommendation to improve efficiency.
The decline in efficiency has led to a decline in customer satisfaction, as evidenced by the customer complaint line and customer feedback cards included with every delivery. This is a big concern. Management realizes the efficiency issue must be addressed immediately in order to maintain customer satisfaction and the company’s stake in the market.
Sarah, the manager of the new distribution center manager, has gathered her team to help improve warehouse efficiencies and address customer satisfaction issues. She has asked her shipping manager, Dan, to address the recent decline in orders shipped— down to 10,500 per day from 12,000 per day. With a growth in distribution, management had increased expectations to ship 15,000 orders per day. The decline is concerning because the capacity of the organization should have increased with the additional distribution center added to the supply line. In addition, the current delivery success rate is 87%, which is a 7.5% decrease during the past six months. AmeriWidgets strives to reach a 97% success rate.
Sarah has identified additional concerns within the distribution center and asked her inventory manager, Jim, to review internal warehouse practices to see if worker productivity, warehouse capacity, and inventory accuracy are operating at peak efficiencies. Currently, Jim manages a team of 30 employees focused on inventory. Jim has noted in previous meetings that deliveries to the distribution center have increased from 8,500 pieces a day to 11,000 without additional personnel being hired. In addition, Jim has informed Sarah that a new product assembly area offered by the company has decreased the available space within the walls of the distribution center. Finally, Jim has noted that without additional personnel hired at the center, the cycle counts performed monthly to help maintain inventory accuracy will naturally be affected by the increased daily deliveries and shipments.
Answer preview to assess aspects of a distribution center facility for their potential to optimize efficiency
APA
780 words
