3SIXTY

Development of Warehousing Strategy to Support Growth

Background & the Client Challenge

The client is one of the top 10 pharmaceutical manufacturers globally.

Due to a period of significant growth, they had expanded one of their Ireland-based facilities.

The Management team recognised the need to ensure Warehousing would be able to scale sufficiently to support their growth plans.

With this in mind, the client took the decision to bring in 3SIXTY to conduct a review of Warehousing strategy for the Irish facility.

What We Did

Working closely with the client’s people, we conducted a review of all on- and off-site warehousing activities and a detailed needs analysis was mapped out.

Working as a single team, we ran workshops, involving Management as well as functional experts, to gather the thoughts of key stakeholders.

We completed a 60-month capacity expansion plan review and overlaid this onto the existing warehousing infrastructure, resources and third-party logistics support.

By conducting detailed mapping of the existing set-up and operation of Warehousing and material movements on-site, we got a detailed understanding of the “As Is”.

A Lean Six Sigma review of the end-to-end process identified the “Future State”.

By combining these, we were able to develop a plan which resulted in a more efficient warehousing solution. Critically for the client, this solution also meant they did not need to invest in additional warehouse capacity resulting in significant cost avoidance.

Results

By having the awareness to ask the right question – will Warehousing be able to scale sufficiently to support our growth plans? – the client was able to:

  • Avoid $7m in cost it otherwise would have incurred, by demonstrating that capacity could be made available within the existing infrastructure
  • Develop a “Control tower” strategy for centralised warehouse management
  • See a 30% improvement in efficiency identified as a result of a Lean Warehousing Review
  • Increase the use of outsourcing of non-core activities resulting in c.$100k in annual savings

To find out how 3SIXTY can support your business, contact BrianOBrien@3SIXTY.ie

Brian O’Brien

Partner & Head Of
Growth Strategies

Get in touch to find out how 3SIXTY can help your business deliver its full growth potential.