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Product Labeling & Distribution
Automotive Manufacturer – A Warehouse Management System to Improve Internal Efficiencies
A major automotive manufacturer located in Detroit, MI, has been a valued CMS customer since 1998. With more than $127 billion in annual sales, 157,000 employees and operations in eight different countries, the company came to CMS looking for ways to enhance their warehouse management system. Specifically, they were looking for practices to improve the efficiency of storing and retrieving products in their warehouses by revising the internal labeling and signage used on storage racks, floors, aisles and dock doors
Prior to coming to CMS for a solution, the company was utilizing five different suppliers for their internal signage and tagging systems, costing them an estimated loss of $300,000 annually due to disparate labeling and picking processes. Different types, sizes and colors were used to label and identify products and areas throughout the company’s warehouses, causing delays and inefficiencies throughout the system. By utilizing CMS’ single solution for all warehousing locations, the company was able to add consistency, reliability and uniformity to the way products were stored and retrieved. A color-coded labeling system was developed and implemented that now allows items to be located and shipped faster, benefitting everyone along the company’s internal supply chain.
The benefits to the company of this solution, which took about two months to implement, have been many and significant. In addition to bottom-line savings of 10% over their previous suppliers, they include the following:
- Smaller number of SKUs to manage
- Faster inventory turnaround times
- Improved quality of order accuracy
- Price breaks due to leveraging materials in all locations
- Number of suppliers reduced from five to one
- Peace of mind knowing the program is now managed by CMS