Data drives every service Alpine Supply Chain Solutions provides. The consulting company began by analyzing MJ Holding’s sales data (retail and e-commerce) and performing a storage type analysis (STA) to produce an ideal layout for its picking operations. Alpine then scrutinized MJ Holding’s on-hand inventory to determine the right rack types for its reserve storage and the right location for all their stock- keeping-units (SKUs). The results of the STA identi ed that 35% of MJ Holding’s inventory moved too slowly and 5% of it moved too quickly for the planned case ow picking set up. “It could have led to signi cant replenishment issues,” says Michael Wohlwend, managing principal for Alpine Supply Chain Solutions. PLAYING THE REPLENISHMENT CARD For a business such as MJ Holding, which so frequently revolves around promotions, as well as the cyclical nature of its products, replenishment is key. Alpine subsequently performed a sensitivity analysis on the top 5% inventory items to determine the right layout for the area and ultimately developed a three-level pick module. Each level and each side of the pick module has a zone. There are four zones per level for a total of 12 zones. “MJ Holding’s goal was to make sure each employee in each zone gets a full day’s worth of work,” explains Wohlwend. “So, our initial slotting was to help them balance the workload.” The three-level pick module has resulted in reduced replenishment time and labor involved. It has created the ability to pick the equivalent order volume in just 57% of the original time and achieved a 43% reduction in labor for peak one-day order le. The results of the STA for reserve storage indicated the top 5% inventory items had several pallets in storage, so a new design was developed that included six- and three-deep pushback racks, along with a double-deep pallet rack, and a single-deep selective rack.
CASEBOOK STUDY Changing the Game THE CHALLENGE
MJ Holding Company, the largest North American distributor of trading cards and novelties to retail stores, wanted to consolidate its operations under one roof. Having decided to build a new warehouse space, it sought to optimize storage methodology as well as its workflows and eciencies. THE SOLUTION MJ Holding first turned to Conveyor Solutions, Inc., a material and storage system integrator, to assist with the consolidation process. Conveyor Solutions soon brought in Alpine Supply Chain Solutions, a consulting company whose data-centric approach educated and informed the entire warehouse build-out. Input from both companies helped MJ Holding achieve its goals and more. THE RESULTS By consolidating operations under one roof, MJ Holding realizes an annual savings of approximately $3 million. A recommended and installed three-level pick module with 12 zones has reduced picking cost per unit by 10%. Improved capacities have resulted in the company being able to handle up to 30,000 orders on any given day compared to the 10,000 to 12,000 orders it could handle previously. Orders that used to take three to four days to process are now completed in just one to two days. NEXT STEPS The inherent flexibility built into the warehouse concept that Alpine designed and Conveyor Solutions installed leaves plenty of room for adjustment. MJ Holding considers both companies to be trusted partners and going forward all three will continue to analyze, grow, and understand MJ Holding’s business requirements to determine how it can be responsive and nimble for the market.
MJ Holding distributes trading cards and other novelties to retail stores. A timely e-commerce expansion ahead of the pandemic helped meet increased demand.
206 Inbound Logistics • July 2022
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