Subdivision proposals
Client
Nationally operating wholesaler in sanitary/heating system fittings and pipes/steel (family business)
Client request
Development of accommodation scenarios for the various activities due to rapid expansion
Approach
- Map out internal logistics processes and corresponding accommodations.
- Investigate the market trends for the various proposals, current process performance and processing bottlenecks.
- Develop alternative scenarios, ranging from expansion including reassignment of space at existing location to partial or complete new construction.
- Substantiate scenarios, both qualitatively and quantitatively, and produce risk analysis for each, including recommendations on expected financing.
Results
The most interesting option proved to be the separation of the operations of the two segments "sanitary/heating" and "pipes/steel".
- An entirely new location was built and outfitted for "pipes/steel" logistics processing, equipped with efficient handling systems.
- The logistics department of "sanitary/heating" remains at the original location, and is being fully refurbished, which, when complete, will mean an important step forward in process efficiency.
- Use of a modern ICT tool meant a markedly reduced stock, keeping storage space needs low. Outplacement of the other segment created sufficient space for this fast-growing enterprise.
