WAKEFIT Main Distribution Centre Design & Process Optimization
About the Organization | wakefit.co
Wakefit is a research and innovation-driven home & sleep solutions company established in 2016 and holds a vision to be the most loved home solutions company in India. With an ever-expanding portfolio that includes orthopedic mattresses, normal mattresses, pillows, bed frames, mattress protectors, comforters, bedsheets, pillows, back cushions, sofas, coffee tables, shoe racks, lighting, décor, and much more.
Wakefit manufactures all of its products in-house in their manufacturing facilities in India. The company sells across the country through its own online portal, other online marketplaces like Flipkart, Amazon and also through wakefit.co offline stores. Their own distribution network spread across 8 major cities and a Main DC in Hosur, Tamil Nādu forms a strong pillar of their supply chain.
Warehouse Design & Process / ERP Optimization | Business Case
Wakefit.co consolidated their manufacturing facility with the 3x growth projections in Hosur, Tamil Nadu along with a Main warehouse of ~ 2,60,000 Square feet. This warehouse adjacent to the manufacturing facility serves as the central warehouse servicing 8 distribution centre across India. This warehouse design project was in collaboration with the Planning and distribution team of the organization. The Business case of the project driven by Hesol Consulting catered to the below said key focus areas to ensure a seamless operation with high throughput from the central warehouse and have the flexibility to cater to seasonality that is 2.5x the average capacity.
- Warehouse Optimization – covering the storage, process, handling, workflow, systems, and material flow.
- Warehouse Layout Design – optimizing space and flow within the four walls
- Design Realization – RFQ process for each infra, technical discussions, commercials validation and procurement of the racking, MHE, customized pallets and other storage solutions
- Warehouse management framework setup which includes the overall Tech stack and in-specific the WMS
In the overall Hesol’s Supply chain services portfolio –Warehouse Simulation, Warehouse Design, Process Standardization and Warehouse management system set up are the core focus areas in the Project WAKEFIT.
OPPORTUNITY
Scope of Work
Basis the discussion with the client and the initial data points the scope of work formulated as below.
- Define the optimal storage methodology for the product varieties, select the appropriate material handling device which was executed by deep diving into the following areas.
- Existing facility layout study with respect to storage, material handling, transport movement and inbound value-added activities
- Business growth by category and the impact in manufacturing plants and distribution networks and the alignment of the same to the company expansion vision,
- In depth product portfolio classification based on the storage and retrieval methods of FIFO
- Simulation of the scenarios for meeting the storage capacity
- Resource estimation
- Through put analysis by design
- RFQ spec finalization for MHE and storage bins with vendor and sample finalization
- WMS tech evaluation, throughput analysis and vendor finalization.
Tools & Techniques
- GEMBA study of the existing warehouse with detailed map of volumes, cycle times and identification of value-add and non-value add activities with the help of VALUE STREAM MAPPING.
- DEMAND ANALYSIS of the products by category with the next 3 years.
- Volume Simulation of the same for SEASONALITY simulation.
- Detailed market research for the optimal material handling equipment availability in India and around the globe with distribution facilities in India.
- Simulation of the OPTIMAL STORAGE calculation and RACKING SELECTION by category.
- MHE selection based on lead-time restriction and TECHNO COMMERCIAL finalization.
- THROUGHPUT ANALYSIS for the optimal layout positioning by category.
- TRANSPORTATION SIMULATION and optimization by distribution lane for DOCK UTILITY improvement to support 2FC (2 day fulfilment cycle) model.
- CAPEX and resource budget estimation with bottom up pyramid approach.
- Established WMS FUNCTIONAL REQUIREMENT DOCUMENT (FRD) for the mother warehouse and vendor evaluation.
Challenges Faced
- Optimization of the pallet position to meet the tail end products that contributed to the 38% of the defined pallet position
- Accessibility of customized products with appropriate bin storage design to maximize MHE throughput.
- Backward integration of the manufacturing process to ensure racking and MHE selection is standardized to eliminate multiple touch points
- MHE customization to meet very large size pallet running to 2.5m and 1 Ton capacity with 75% support along the product length to reduce the rejection of the product due to deformation
- Flexibility of the layout to have easy accessibility to accommodate varying product sizes from 200g to 2T and product size from apparel to finished heavy weight furniture
- Storage bin designing to accommodate 3X volumes during peak season and average sales.
- Constrained timeline for execution to facilitate operational warehouse to meet the 3X seasonality demand.
SOLUTION
WAKEFIT DC Design & Process Optimization
We approached the business case as follows.
- Review of the order planning process and optimize the SKU portfolio for the next 3 years business growth and freeze the storage quantity by SKU
- Define the pallet position by category in alignment to the approved storage quantity.
- Standardize the pallet and storage bin dimensions to have minimum design to meet average and maximum volumes of seasonality.
- Finalize the specs and float RFQ for the racking, storage bins and MHE.
- Lead Techno-commercial discussions and validate every detail before PO release.
- Bottom-up approach for building the CAPEX and approval for phased execution.
- Complete throughput analysis for the different projected growth and prepare risk mitigation plan by category.
- Implementation of phase I for the current year for racking, storage bins, steel pallets and MHE.
- Complete tech-stack analysis for WMS and narrowed down the vendors for implementation.
RESULTS
- Completed Designs by Category factoring all the nuances required & completed MHE selection by Product type.
- Completed Design Realization by Category within 3 Months.
- Contract Approval to Execution within 6 months for racking, storage solution and customized MHEs.
- 37% Space Reduction in the Floor Storage area.
- 84% Cubic space utilization improvement through opt design.
- FIFO implementation by virtue of bin design for all categories with Fool-proof methods arresting wrong picking.
- 30% Space Reduction in Processing areas.
- WMS FRDs and Structure is finalized and Vendor options are provided
