The Challenge

The client was facing severe warehouse space constraints caused by overbuying inventory during COVID-related supply disruptions. With limited space, inefficient slotting, and no formal metrics to project future needs, operations were strained and risked impacting order fulfillment and growth.

Our Approach

We were brought in to assess current warehouse operations and implement a strategy to optimize space utilization and improve forecasting accuracy. We collaborated with warehouse leadership, procurement, and planning teams to align storage practices with actual business needs.

Key focus areas included:

• Conducting a detailed slotting analysis to improve product placement efficiency
• Identifying underutilized storage areas and redesigning layouts for maximum capacity
• Developing a capacity planning metric to project future warehouse needs
• Establishing a cross-functional feedback loop to improve demand forecasting and procurement

The Solution

We executed a three-part transformation plan:

• Slotting Optimization – Designed and implemented a slotting process to reduce travel time, improve pick efficiency, and free up prime locations for high-demand items
• Space Utilization Improvements – Reconfigured storage zones and implemented better vertical storage strategies to reclaim wasted cubic space
• Metrics & Continuous Improvement – Created a forward-looking capacity metric and integrated it into planning cycles; established regular feedback sessions between operations, procurement, and forecasting teams

Results

• Expanded warehouse capacity by 5% without physical expansion
• Developed a capacity projection metric to forecast future space needs
• Instituted a feedback mechanism to improve demand forecasting and purchasing accuracy
• Reduced risk of overbuying and minimized strain on warehouse operations