HD Supply is a publicly traded (NASDAQ: HDS) industrial distribution company. The company made $6.15B in revenue in 2019 and operates out of 41 distribution centers in North America. The Atlanta DC (GA-02) is the newest and largest in HDS’s network, having opened in May 2019. The facility spans one million square feet, has 66 inbound dock doors (100+ total), and has over 150 employees.
The team studied the inbound system at GA-02. The inbound system involves three main process:
Unloading: 1-2 associates unload material from a trailer onto the receiving floor
Receiving: Receiving associates verify the goods received and enter the information into SAP
Unloading: Associates move the material from the receiving floor onto the shelves of the warehouse where they become available for sale
The time it takes for material to move from the trailer onto the shelves is considered dock-to-stock time.
Decrease Dock-to-Stock Time:
Average dock-to-stock cycle time should be reduced to give GA-02 the ability to process all incoming daily shipments within the same-day.
Variability from sources such as holding zones or cherry-picking should be minimized.
Utilize Labor Planning:
In an effort to move to same-day processing, GA-02 should begin scheduling labor according to daily labor demands.
Improve Data Visibility
GA-02 should make data-driven decisions to improve and plan operations.
Phase 1: January - February
Conduct time studies and build process maps for each step in the inbound process
Identify the bottlenecks and data constraints on the inbound system
Phase 2: March
Design standard operating procedures to streamline the inbound process and reduce variability in receiving and putaway
Develop optimization model to improve trailer docking and pallet routing in the warehouse
Develop a staffing tool to help management make data-driven staffing decisions
Phase 3: April
Pilot deliverables at GA-02 to determine reduction in dock-to-stock time and labor cost savings
Develop a full implementation plan for the deliverables at GA-02 and for other similar sized warehouses
Trailer Assignment Model - optimization of trailer assignment to dock doors to reduce distance traveled for material
SOP: Inbound Dock Zoning - organization for the inbound dock to reduce variance in inbound processes
SOP: Disciplined Processing with Priority - standardization of receiving and putaway processes to reduce variability and increase productivity
Intra-Day Staffing Model - increase data visibility to warehouse management
Vendor Compliance Policy
SOP: Pre-Receiving - reduce dock-to-stock time by shortening the receiving process
Value and Impact
Improved Data and Process Visibility to HD Supply
GA-02 Potential Savings: $261,000 per year
Trailer Assignment and SOP’s: $63,000 per year
Intra-Day Staffing Model: $66,000 per year
Vendor Compliance Policy and Pre-Receiving: $132,000 per year