CASE STUDY – Office Net – Buenos Aires, Argentina
To develop the optimum distribution center for superior customer service & profitability.
Office Net is the largest retail office supply organization in Argentina, one of the largest in South America. Office Net has experienced impressive web sales growth while maintaining superior service levels in a very competitive market.
To help insure success during their continuous rapid growth period, Office Net’s management asked the FPS Group to partner with them to optimize their distribution processes for the future.
The FORM Operational Analysis of the current distribution center determined what could be done to optimize current processes in support of the Materials Flow Five Year Strategic Plan. Based on this analysis, a detailed facility design was developed for a world class operation, properly organizing the complete range of DC functions.
Potential opportunities were analyzed to improve service levels and profitability such as increasing inventory turns, improving dock utilization, reducing damage, reducing errors, improving methods of handling returns, optimizing the order fulfillment process, team building, improving responsiveness, improving delivery truck densities, optimizing the various shift structures, improving the work environment, establishing safety procedures, improving human resource utilization, and improving ergonomics to name a few.
Productivity technologies were implemented to support Lean methods and procedures for optimum productivity. This greatly extended the service life of the existing facility and clearly showed the path for continued success.
FPS worked closely with Office Net’s COO, Leonardo Piccioli to establish the FPS FORM Materials Flow Five Year Strategic Plan for their growing distribution center requirements. The FORM data defined the required quality service level that Office Net’s customers have come to expect. This was done on a quarterly bases specifying numerous critical operational indicators. FORM included a detailed Flow & Cube Analysis of the optimum distribution process requirements was performed to determine the specific operational demands.
The FPS Flow Optimization and Resource Management FORM program is designed to develop the optimum operational design and outline how it will operate over the planning horizon. This is one of the most important and least expensive investments that facility management can make prior to any major changes.
Flow Optimization and Resource Management