CASE STUDY SS-FB-DD-03| Due Diligence

Delta Driver’s Strategic Optimization for Ingredient Storage

Unlocking $1M in Savings Through Optimized Storage

Food & Beverage | Due Diligence

$1M

Outside Storage Cost Eliminated

7 Wastes

Operational Waste Reduction Framework Applied

100%

Improved Inventory Visibility & Data Reliability

Challenge

The company faced critical inefficiencies in inventory management, data reliability, and operational leadership, compounded by a lack of proper tools and infrastructure for warehouse planning.

Lack of Storage Metrics: No unit of measure conversion table to define storage requirements for products. Unreliable Data: Historical data from an ungoverned MRP system led to significant planning errors.

Poor Leadership: Leadership lacked accountability, structure, and discipline, worsening inefficiencies. Fragmented Systems: Unrelated and outdated spreadsheets introduced further inaccuracies. Inadequate Planning Tools: No scaled building drawings to estimate warehouse space needs.

Solution

Delta Driver implemented data-driven and practical approaches to resolve inefficiencies, improve space usage, and align inventory management with demand patterns.

Automated Tracking: Introduced scan gun data to optimize item locations and control space usage. Scalable Warehouse Model: Developed a Visio-based layout for future state inventory needs using existing PDF floorplans. Optimal Placement: Positioned high-volume items near points of use to reduce travel waste.

Dynamic Inventory Classification: Updated ABC inventory classifications to reflect changing demand. Efficient Racking Solutions: Proposed racking systems to maximize storage capacity and streamline operations.

Results

The assessment yielded significant cost savings, operational improvements, and a roadmap for execution that validated Delta Driver’s expertise in transforming ingredient company operations.

Cost Savings: Identified $1 million in outside storage waste for elimination. Enhanced Efficiency: Reduced handling inefficiencies through optimized product placement. Operational Waste Reduction: Minimized waste within the “7 deadly wastes” framework.

Improved Data Reliability: Provided accurate inventory visibility for better decision-making. Future Engagement: Secured next-phase execution, demonstrating trust in the proposed solutions.

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