John Deere Grovetown Warehousing Analysis
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| SKU ABCDs | SKU ACTIVITY PARETOThere is a super majority of activity concentrated in a small minority of SKUs, specifically, 50% of all warehouse transactions are executed against on 202 SKUs (4.2%). Also, a majority of the SKUs, specifically 2,600, have almost no transactional activity against them (5%). The concentrations and dilutions of activity across the distinct A, B, C, and D SKUs suggest the creation of A, B, C, and D “warehouses within the warehouse”. | 4 |
| TRANSACTION PROFILE | Lines and EachesWarehouse transactions are almost completely comprised of a single SKU with quantities ranging from 10 (first quartile) to 25 (median) to 75 (3rd quartile). | 5 |
| A DAY IN THE LIFE | Lines and CubeActivity days can be roughly characterized as VERY HEAVY (more than 8,400 lines and 28,000 cubic inches), HEAVY (between 6,800 and 8,400 lines and between 20,000 and 28,000 cubic inches), MEDIUM (between 2,200 and 6,800 lines and between 6,400 and 20,000 cubic inches), and LIGHT (less than 2,200 lines and less than 6,400 cubic inches). Staffing should reflect these distinctions. | 6 |
| WEEKDAY PROFILE | Lines and CubeIn rank order the transactional activity and related cube takes place on Tuesdays, Wednesdays, Thursdays, Mondays, and Fridays. The peak day’s activity is 17% higher than the valley day’s activity, again suggesting that staffing should be adjusted accordingly; and/or order shaping should be employed to balance activity across the weekdays. | 7 |
| ACTIVITY and LABOR FORECASTABILITYTO activity is readily forecastable utilizing the forecasting engine in RightChain Forecasting. As a result, more sophisticated and optimized labor planning can be implemented to reduce overall staffing requirements. | 8 |
| MOVE TYPE PROFILEThe large majority of warehousing transactions and cube are executed on 350 and 101 move types. A small minority of moves and cube are executed on 998, 312, 417, 999, and 250 move types. The remainder of move types are inconsequential. | 9 |
| INVENTORY OPPORTUNITIESSKUs are classified based upon three inventory dimensions – days on hand, dollars on hand, and cube on hand. Those SKUs with high days, dollars, and cube on hand are candidates for inventory interventions. | 10 |
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| STORAGE MODE OPTIMIZATION | Small PartsRightChain.ai simulates the productivity, storage density, accuracy, picking labor cost, restocking labor cost, occupancy cost, equipment cost, and error cost in each small parts picking storage mode including bin shelving, storage drawers, flow rack, carousels, and automated storage and retrieval systems (e.g. OPEX Perfect Pick, AutoStore, and KARDEX VBM). | 12 |
| STORAGE MODE OPTIMIZATION | Small PartsConsidering from among bin shelving, storage drawers, carousels, lift modules, and ASRS machines (Perfect Pick, AutoStore, and Miniload); overall small parts picking costs are minimized by the OPEX Perfect Pick solution. | 13 |
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| Section 1PriceSmart vs Domestic Warehouse Club Supply Chain Configurations | 19 |
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