News & Research: Client Successes

Case Study: Warehouse Space Utilization

ScottMadden assisted a global pharmaceutical company to implement warehouse facilities management solutions for its largest international manufacturing sites.

• The company was merging the supply chain operations associated with a recent acquisition. It also planned to increase manufacturing volumes in a country where its largest manufacturing operations existed
• Management wanted to know if existing warehouse space would accommodate growth or if other facilities management solutions should be explored
• Management wanted to compare their international warehouse operations with leading practices and performance metrics

• Reviewed warehouse operations in 28 locations
• Assessed each location to determine potential capacity for additional storage and define the steps needed to reach this goal. Options included:
  • Modifying floor layouts (aisle width, rack locations, etc.)
  • Changing existing racking configurations (rack depth, height and design)
  • Expanding current warehouse space (altering wall and ceiling height, new construction)
  • Consolidating warehouse space in larger distribution centers and closing selected warehouses

• Inventory storage and warehousing element of the overall merger plan was completed on time
• Management implemented the following facilities management solutions:
  • Built a new warehouse at one of its manufacturing sites
  • Consolidated packaging inventories at this site, which provided more space at other warehouses