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Operational Design
Distribution Design strives for strategic improvement in its logistics operations projects, the type of improvement that creates a competitive advantage for our client. Competitive advantage comes from improvements in quality, accuracy, timeliness, productivity, and cost. Through value-based reengineering (if it doesn't bring value, we won't recommend it), Distribution Design recommends a complete Concept of Operations.
The elements of an Operational Design are:
Detailed operational review of the current operation
Operational data analyses
Velocity Profiling: This is a velocity profile typical for many companies. Just 5% of the SKUs represent 60% of the lines shipped. This also means just 5% of the SKUs consume 60% of the picking labor. Conversely, the slowest moving 60% of the SKUs are less than 10% of the lines shipped.
Order Profiles
Receiving Profile
Full Case / Split Case Profile
Productivity measurements and benchmarking
Growth projections
Key Operating Volumes Chart
Recommended operational description of each function
Systems functionality
Space requirements for each function
Equipment requirements for each function
Facility characteristics: size, height, dock doors, sprinkler type
Bill of materials for all capital equipment
Cost of each component
Systems architecture and peripherals
Implementation plan: facility, systems, & equipment
Fred Kimball, Principal of Distribution Design , has evaluated over 425 different logistics operations and has designed operational improvements for facilities as small as 6,000 sq. ft. and as large as 2.4 million sq. ft.