Company

Listed global player in specialty food ingredients with production on 3 continents. Ingredients are subject to GHS regulations and require strict production, storage and transport conditions. Due to high growth rates and a high degree of rework, the production site had reached its limits.

Situation

The European factory is located in the middle of a residential area. The necessary expansion, replacement and improvement of existing factory parts was at odds with the need to organise logistics more efficiently and safely.

Approach

Our customer had made the choice to replace existing (external) warehouses (off-site) with a new, modernised warehouse with sufficient capacity. Gwynt has assisted the client in logistics design of warehouse, selection of project developer (financier and builder of warehouse), drafting of LOI and contract and final construction of the warehouse.

On site, a quantitative analysis of the several flows has been executed. Based on lean philosophy and based on existing spaces, a redesign has been made to optimise both required storage space and required FTE. A thorough stock analysis of raw materials in particular has been done to optimise both safety stocks and lead times of suppliers.

Results

The new warehouse, including migration costs, will pay for itself within a year. The on-site optimisation has led to a 10% FTE reduction and almost € 0.5 million reduction of raw material stocklevel.