Case Study on Logistics Distribution Center

A division of a major logistics corporation had an opportunity to improve upon the work hours in one of their distribution centers, which was made up of several areas of operations. They were operating above plan and were running the risk of not meeting planned budget. The packaging operation, which depended exclusively on manual labor, had already accumulated many hours in FY10 and was one of the areas to be addressed.

Case Study on Logistics Distribution Center

The goal was to improve the overall distribution center metrics by reducing the packaging operations from a total average of 100 hours/day to less than 50 total hours. Technical/Process situation (i.e. the current state)

The packaging operation consisted of two feeders leading to two belt-tables; one to work local packages and the other to do mixed locations. The packages were dumped onto the belt for the associates to sort manually into delivery containers.
Several aspects of this manual process were inefficient due to:
• A large area for the associate to cover
• A lot of back and forth movement from table to containers
• Handling of packages multiple times
• Human error in reading addresses and sorting incorrectly
• Waiting for packages to be dumped onto belt
 

Upon observations and measurement, it was determined that much of the packages that were being handled manually could have been sent to other machines within the facility to be sorted automatically.Read more…

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