A new facility design or redesign to an existing facility can offer ample benefits to businesses looking to save time, money and resources. While there is no doubt that a facility redesign is beneficial, there are multiple ways in which businesses can ensure the process provides the largest return on investment possible.
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There are steps businesses should take to guarantee a successful facility redesign that can deliver major cost savings over time. The critical steps include:
- Analyze the impact of distribution center (DC) optimization. All sales are effected by supply chain efficiency and it all begins with the DC.
- Begin strategic planning. Businesses should create a cross-functional project team that involves DC, information systems, sales and account experts.
- Develop objectives and priorities for the warehouse strategic plan. An agreement of this criteria will be made by the team, and a database will be established.
- Document current processes to determine whether they are working or not. Develop cross-functional flows that incorporate business systems and non-value added vs. value added process flows.
- Identify, document, and evaluate alternative DC strategic plans. Choose the best warehouse strategic plan based on economic and qualitative evaluations.
- Define the plan and get upper management approval. The final result of this plan should be a comprehensive document that is senior management-ready.
- Create a list of potential vendors that are qualified and the right fit for your business. Narrowing the list down to only qualified vendors will help you pick a winning vendor to redesign your facility.
- Finalize the layout. Your partner should redesign the conceptual layout of your facility to maximize storage and minimize congestion.
- Develop a transition plan for implementation. The selected partner needs to define tasks that will be assigned and establish process for transitioning.
Facility design offers businesses substantial operational savings over time. By taking these steps and a collaborative approach between an internal team and a vendor, the process will be worth the time put in to implement it.