Enhancing an Underperforming Warehouse Operation
When I began working with Foundation Building Materials, the warehouse was having difficulty keeping up with a growing number of orders. The facility struggled to ship products at a pace that matched sales, leading to delays and lowered customer satisfaction. After reviewing the situation, I found several areas that needed attention, including inventory management, product flow, fleet usage, and compliance with safety regulations. Addressing these concerns would help the warehouse better support the company’s growth and meet customer expectations.
Before focusing on reorganization, I first resolved some pressing compliance and safety issues. Fire exits were partially blocked by inventory, aisle markings were unclear, and certain delivery trucks did not have all the required permits. I made sure that paths were cleared, fire extinguishers were replaced where needed, and storage racks were anchored in accordance with guidelines. Trucks were inspected, brought into compliance with local regulations, and equipped with proper decals and paperwork. I also compiled required safety documents and instructions for handling spills, making them easily accessible in binders on-site and in each truck. Once these steps were completed, the warehouse met necessary standards and provided a safer environment for employees.
Restructuring Inventory
With safety and compliance addressed, I turned my attention to product flow and how inventory was organized. By examining historical data and reviewing recent demand, I identified products that sold rarely yet took up valuable space on prime shelves. Moving these items to an as-needed ordering model freed up room for bestsellers that needed to be readily available. To further optimize space, I sourced and assembled an unconventional style of storage rack designed for stacking up to 32 pallets of irregularly shaped goods within a compact 160 square feet. High-demand goods were then placed closer to receiving areas and loading zones, reducing travel time and allowing orders to be filled more efficiently. As a result, out-of-stock situations occurred less frequently, and the team could handle the workload more effectively.
Optimizing the Delivery Fleet Through Technology
Improving the use of the delivery fleet was also important. Previously, some trucks carried loads that were not well-planned, resulting in longer routes and less efficient deliveries. To address this, I introduced a system with real-time GPS tracking, route optimization, and live diagnostics. These tools helped manage schedules more effectively, cutting down on unnecessary travel and allowing rerouting around traffic or bad weather. Within a few months, the warehouse reduced fuel costs, improved on-time deliveries, and identified maintenance issues earlier. Drivers reported that this approach made their workday more manageable, contributing to a more positive work environment.
To maintain these improvements, I developed detailed SOPs covering receiving, storage, and pre- and post-trip vehicle inspections. At first, some drivers hesitated to follow these new routines, especially when it came to accurately recording their hours. I addressed these concerns by holding a round-table discussion with the drivers. Their feedback allowed me to refine the SOPs, ensuring the guidelines were practical and user-friendly. To further support the drivers, I implemented a structured training program for new hires that simplified onboarding and clarified expectations from day one. This additional step reduced uncertainty, made new drivers feel more at ease with their responsibilities, and ultimately contributed to a lower turnover rate. Over time, compliance rates rose, mechanical issues were caught early, and the risk of unexpected breakdowns diminished. This collaborative approach to SOP development, combined with improved training, not only strengthened adherence but also created a sense of shared responsibility and trust within the team.
Implementing a Dynamic Pricing Tool
Beyond the operational improvements, I also looked at how the company managed its monthly price changes and rebates. The sales manager spent a great deal of time manually updating pricing information for customers. I created a dynamic pricing sheet that allowed for quick and easy adjustments, saving hours of work each month. Customers benefited from timely and more accurate quotes, which led them to place larger orders and rely less on phone calls to confirm pricing. This approach helped the sales team respond to changing conditions more efficiently.
A Foundation for Ongoing Success
By the time I finished, the warehouse operated more smoothly, shipments went out more reliably, and the team had a clearer sense of their roles and responsibilities. Compliance and safety measures were in place, product flow matched demand, deliveries were planned with fewer delays, and the sales team had a better tool for managing price changes. These improvements helped the business function more effectively and provided a stronger foundation for future growth.
