Case Study

Optimizing Warehouse Efficiency and Logistics Despite Challenges

Discover how Covenant confronted and resolved intricate integration challenges for a client.

The Overview –

Covenant stepped in to assist a client facing challenges in integrating inbound raw materials and finished goods into their distribution centers. The client sought our expertise to streamline this crucial aspect of their supply chain. Our focus was not only on resolving immediate issues but also on providing a tailored and sustainable solution to enhance operational efficiency. The collaboration represented more than a service; it was a strategic partnership aimed at fortifying the client's distribution operations for long-term resilience in the evolving business landscape. 

The Challenge –

A leader in the manufacturing industry, specializing in industrial machinery and equipment filtration, was facing significant logistical challenges. They required an inbound raw materials and finished goods distribution center to support their manufacturing line and cater to their global customer base through just-in-time delivery of inventory.

The task involved managing four separate business units within their company, each with different needs and operational requirements. The complexity of this situation required a solution that would be flexible, scalable, and efficient to handle the peaks and valleys of inventory volume, while reducing total required square footage. 

CHARACTERISTICS
(can  be pulled from overview)
  • Four separate business units to manage
  • Flexible solutions
  • Global customer base
EXPECTATIONS
(can be  pulled from challenge)
  • Warehouse consolidation of finished goods and manufacturing parts
  • Reclassification of products to remove the need to return to manufacturing point
  • Rework of products at the warehouse to eliminate additional freight cost  

The Solution –

  • 200,000 sq. ft. warehouse
  • Oracle WMS
  • 25 associates
  • Consolidate and process export shipments
  • High vertical storage to reduce total required square footage
  • Warehouse consolidation - finished goods and manufacturing process parts
  • Reclassification of products to remove the need to return to manufacturing point
  • Performing final customer specific logo labeling of products

 
The Results –

The partnership between the customer and Covenant resulted in significant improvements in efficiency, flexibility, and cost-effectiveness. The strategy of warehouse consolidation led to a decrease in required square footage and an increase in inventory management efficiency, meaning major savings for the customer.

The training program established ensured a deep understanding of the client's unique needs, leading to efficient allocation of labor to maximize efficiency. The consistent operating procedures and training resulted in a notable decrease in team member turnover, dropping from 17% in 2021 to 0% in 2022, and still holding in 2023!

Covenant's commitment to continuous improvement and cost savings also enabled the client to find additional space as inventory needs grew on two separate occasions, proving the scalability of the solution.

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