Reduction in operational costs
Increase in productivity
Reduction in product travel distance within warehouses
A leading department store chain in Mexico partnered with Sintec Consulting to assess the maturity of its processes and technology in distribution centers. This comprehensive evaluation aimed to design a strategic plan for advancing its supply chain maturity. The initiative successfully boosted productivity and service levels in distribution, while streamlining operations to reduce administrative workload. Additionally, operational costs were significantly reduced, productivity increased, and product travel distance within warehouses was minimized, driving greater efficiency and long-term operational improvements.
“Struggling with inventory risks and operational inefficiencies, the company faced a pressing need for process optimization in its distribution centers.“
The department store chain faced significant challenges in its distribution centers, where productivity and service levels were below industry standards. Several categories were on the brink of inventory shortages, while manual processes created an intensive administrative workload. These inefficiencies hindered the company’s ability to maintain smooth operations and meet customer demands in an increasingly competitive market.
The company partnered with Sintec Consulting to assess and enhance its distribution centers’ maturity. This collaboration focused on addressing inefficiencies and optimizing processes to improve productivity and decision-making in the supply chain.
The project delivered significant improvements in distribution center operations. Optimized warehouse slotting and ABC arrangement reduced product travel distance by 80%, increasing productivity by 20%. The integration of WMS (Warehouse Management System) and advanced analytics enabled data-driven decision-making, leading to a 14.9% reduction in operational costs. These advancements positioned the company for long-term supply chain optimization and strengthened its competitive edge in the retail sector.
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