Warehouse Losses

About This Project

COMPANY

Multinational FMCG Manufacturer

DURATION

5 days

PROJECT

Investigate warehouse damages and stock losses of around 20% in finished goods warehouse.  Gap turned out to be due to semi-literate forklift drivers not being able to read pallet labels and pallet stacking instructions.  This lead to product being damaged by forklift drivers stacking two 700kg pallets (1400kg) on top of a 200kg pallet.  UK head office ERP system generated pallet labels was modified to include stacking images (Top [light pallets], Middle, Bottom [heavy pallets]) that allowed semi-literate forklift drivers to see where they should stack a pallet.  Stock damages and losses reduced from 20% to 4.3% within 4 days.

RESULT

Improvement of pallet labels, training of all forklift drivers resulting on saving more than US$6 million per annum

VALUE USD

$  6 079 027.36

Category
GapsResolved