Case Study
Warehouse Re-Design Reduces Labor Cost per Unit by 10%
Warehouse Re-Design Reduces Labor Cost per Unit by 10% Overview Kenco Logistic Services manages a 485,000 square foot distribution center for a major manufacturer in the kitchen and bath industry, employing 44 permanent employees and 11 contracted labor employees. The average daily thru put is 30- 40 trucks per day. The site also includes an added postponement packaging production department that packs 900-1,100 units per day. Challenge Kenco’s management team and customer agreed there was an opportunity to re- design the physical layout of the distribution center to improve efficiency and reduce labor cost per unit. The hope was a re-design could lead to improved labor productivity, better storage density, improved quality control, better overall flow, and increased aesthetic value withi