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Millions Saved at a Wine & Liquor Site by an Industrial Engineer

An innovative solution by the site Industrial Engineer accelerates performance of a facility


Philadelphia, PA, USA – WEBWIRE
Image source Google
Image source Google

Accurate implementation of velocity analysis and slotting saves money and hours for the facility

Industrial engineers play a critical role behind the scenes in solving complex problems and one such example is of a site in PA and how a PennState graduate helped improve its operations. Viraj Lele graduated as a Gold medalist in his Bachelorís Degree, and was awarded scholarships at prestigious universities in the USA. He serves as an Industrial Engineer handling crucial projects with a Supply chain giant.

His work has received recognition with his papers being accepted in International Journals (https://www.ijsr.net/archive/v5i5/NOV163851.pdf). This paper highlights the transportation models implemented to help save the company dollars.

This column talks about a facility supporting Wine & Liquor business in the state of Pennsylvania. Acquiring a new business in 2022, the operations at this facility doubled with its picking numbers increasing from 20,000 to over 50,000. This increased replenishments caused:

  • Large volume of replenishments caused delays in picking and more labor was required to finish tasks.
  • Delayed picking caused delayed product deliveries.


This problem was addressed by their siteís Industrial Engineer Viraj Lele. Lele performed velocity analysis of the Stock Keeping Units (SKUs) and identified a large number of heavy-volume SKUs being directed to smaller locations by the system, which caused high replenishment. This led to a huge amount of time in filling these locations which dinged the site on a heavy picking day.

To address this Lele studied the picking pattern for each product and identified its pick velocity, thereby building a velocity tool with the systems team. Later he slotted products based on their velocity in different regions.

The solution:

  • Studying the velocity of high, medium, and low-picked SKUs for their trend over the past year.
  • Slotted high-picked SKUs in bulk regions and permanent big locations, and low-picked SKUs slotted to occupy smaller locations.


Result:

  • By improved slotting the avg. count dropped by 50% in 3 months. Later, the number was averaging in 200s.
  • Improved slotting, and lowering replenishment counts, saved 6 hours of the total shift time
  • Reduction in replenishment time made labor distribution easy and saved close to a million dollars with on-time delivery.


Viraj Lele has been actively involved in many such projects performing a vital role to make continuous improvement options a reality for the site saving money, hours and making it a Lean facility.


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 Supply Chain
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 Optimization
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