DC Saves with a Large-Scale Retrofit
Retrofitting, racking, and reslotting the warehouse saves this retailer from the cost of building new warehouse space.
(Boonton, NJ, October 29, 2009) For a sports equipment retailer in Atlanta, spending less than $200,000 on a retrofit of its existing DC helped it put off spending millions of dollars to build a new facility.
In an article in the October issue of Distribution Center Management, Bob Frye, a senior account executive with consulting firm Peach State Integrated Technologies explains. The company was closing down a DC in Texas and consolidating everything into the Atlanta facility - but it was going to be a tight fit.
However, with some careful planning, the company underwent a retrofit of its existing facility, analyzing its inventory and order filling process and looking for ways to make better use of the existing space. Frye says the company ended up retrofitting the racking, then reslotted the entire warehouse.
The end result was that the company will be able to delay building a new DC for almost five years, saving a significant amount of money and allowing ample time to properly plan a new facility. Three lessons learned for a smooth retrofit:
- Schedule work on weekends/holidays
- Design equipment workarounds
- Hire temporary labor.
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