Gaining a warehousing advantage
In today’s retail environment, companies need to be flexible enough to adjust to changing market conditions and customer demands. For retailers, it is about providing the right product, at the right place, and at the right time to take advantage of full price selling.
Working with a major U.S. toy retailer, PLG was called on to create a solution to enhance the company’s warehousing and distribution operation with the goal of improving inventory utilization and reducing costs. Prior to signing on with PLG, the retailer was using multiple warehouses for its businesses—pulling from separate inventories for its retail and ecommerce businesses. This model prohibited the retailer from quickly adjusting to market conditions and reallocating inventory as required by the market.
Smart and strategic consolidation
PLG created a warehousing and distribution center providing the major retailer with the ability to consolidate all its inventories into one, which allowed them to leverage multiple distribution channels from a single place. This was achieved through PLG’s innovative Warehouse Management System (WMS). PLG and the retailer utilized this technology to support the operational flow and demand of the merchandise—significantly reducing the variable labor to control two inventories.
PLG also helped the retailer reduce costs by improving its process for picking orders using the WMS technology. This proprietary software allowed PLG to “batch” orders, “slot” inventory, prioritize picking, and streamline variable labor costs.
30 percent greater productivity—and a lot more fun
In less than 3 years, these effective solutions planned and implemented by PLG, allowed the retailer to improve productivity by 30 percent, decreased through-put time, and increased customer satisfaction.
In addition, with the consolidated warehouse solution, PLG allowed creative, value-add services for the special building of products for customized online orders—allowing customers to choose specific products and accessories and have the customized orders shipped directly from PLG’s facilities to the retailer’s customers.Resources overview