Case Studies:

Problem:

With over 40 miles separating two buildings used for inventory storage and assembly, SPG’s client, an international manufacturer of electronic products, wished to consolidate the two into one. A potential building was identified. But did it make sense? Was it the right building? Proper layout? Geographically desirable?

Solution:

SPG was engaged to participate in a Feasibility Study to evaluate storage space requirements projecting five years into the future. Also to be evaluated were labor needs, staging and loading zone requirements, dock door demands and manufacturing/ assembly space layouts.

SPG thoroughly assessed, through a variety of statistical and analytical tools and approaches, inventory requirements, storage methods, safety stock needs, line expansion, return goods/ buy back activity, staging demands, assembly configurations, obsolescence/ discontinuation of product lines, number and size of incoming/outgoing truckloads, seasonal peaks and receiving/ shipping practices.

Results:

The Study’s outcome resulted in a finding that the identified building was not sufficient to meet the client’s needs, neither in the short term nor within the projected horizon. The Study prevented the client from making a decision that could have been damaging, costly to their business and potentially result in loss of face with their overseas parent company.