SUCCESS STORIES
As a retailer dedicated to curating inspiration for the home, our client serves as an international destination for contemporary and modern furniture, housewares, and decor. With over 100 stores and franchise partners in 9 countries, the company is renowned for delivering exceptional service and topnotch products both in store and online. To maintain their high standards, this retailer is on a journey to improve labor management across their distribution operations.
With the launch of a new 646,380 square foot fulfillment facility in Romeoville, IL that employs 500 associates, this retailer faced the challenge of optimizing labor management. With nearly half of their sales occurring online, efficient fulfillment and attention to detail were paramount. The company sought to implement a labor management program to ensure productivity, accuracy, and consistency across all aspects of the distribution center.
The retailer and Alpine Supply Chain Solutions partnered to develop and implement Engineered Labor Standards (ELS) for 21 unique job functions in the facility. Nine of these functions interface with Blue Yonder’s Labor Management System (LMS) and 12 interface with Pyramid’s Warehouse Control System (WCS). The tasks cover all aspects of the retailer’s highly automated operations including receiving, put-away, picking, packing, performing value-added services, shipping, returns processing, and more.
The labor management program exceeded expectations, creating a culture of accountability, continuous improvement, and enhanced employee engagement. The initiative uncovered $2.5-3 million in annual direct variable labor savings and identified $750,000 in annual indirect savings opportunities. Additionally, safety, consistency, accuracy, and productivity were significantly improved. Encouraged by the success of the program, the retailer plans to rollout labor management programs to five additional distribution centers, ensuring operational excellence across their network.
