Deliver Your News to the World

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 Bachelor’s 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 site’s 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.


( Press Release Image: https://photos.webwire.com/prmedia/86439/302194/302194-1.png )


WebWireID302194




 
 Supply Chain
 Industrial Engineering
 Optimization
 Continuous Improvement
 Logistics


This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.