Poster

Client Context

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:

  1. Unloading: 1-2 associates unload material from a trailer onto the receiving floor
  2. Receiving: Receiving associates verify the goods received and enter the information into SAP
  3. 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.

Project Objective

  1. Decrease Dock-to-Stock Time:
    1. 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.
    2. Variability from sources such as holding zones or cherry-picking should be minimized.
  2. Utilize Labor Planning: 
    1. In an effort to move to same-day processing, GA-02 should begin scheduling labor according to daily labor demands.
  3. Improve Data Visibility
    1. GA-02 should make data-driven decisions to improve and plan operations.

Design Strategy

  • 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

Deliverables

  • 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
  • Web Application

Project Information

Spring 2020
HD Supply, Inc

Student Team

Tyler Bennett, Jonathan Clarke, J.J. Lu, Nirai Mohankumar, Jack Rager, Srikar Thammishetti, Wendy Wei, Eileen Zhu

Faculty Advisor

Faculty Evaluator