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Case Study – Innovating Warehouse Ordering

By taking small innovative steps, we can streamline work procedures and help your organization save precious time.

Six Sigma tools were utilized to re-engineer the ordering practices of a materials warehouse in a large manufacturing plant.  This was done by establishing clear guidelines for Re Order Points (ROP) taking into account the minimum order quantity, critical usage requirement and historical usage patterns.  On one hand it saved the company millions in unnecessary ordering and on the other hand it ensured that all critical spares were ordered in a way which significantly reduced instances of stock-outs to less than 2.5% in the first year alone.  In the second year, they were reduced to less than 1%.