I can manage capacity with my eyes closed... it's code for
We didn't know what to expect
The Company was increasing its Food Offerings
Which would increase its footprint
in the Distribution Centers
How much more food?
We don't know
When will it start?
We don't know
This is at the SAME time
Where we got more consolidated loads
Way less 6' tall pallets, Way more 2' tall pallets
The freight was SPEAKING to me
It speaks to everybody
I'm no box whisperer
Here are some basic rules about food and non-food
Food CAN'T be back to back with Non-Food, ever <--
Non-food CAN'T be stored above Food, ever
You CAN have Food and Non-Food in the same aisle
Food CAN be above Non-Food with NO segregation
A minimum of 4' of separation if adjacent
This is where it gets a little gnarly, but you'll understand
Aisle 15 has an odd-side and an even side
Next to Aisle 15 is Aisle 16...
The Aisles run North to South
Even side is on the West
Odd side is on the East
It has 100 locations
Odd side goes 1, 3, 5, 7
Even side goes 2, 4, 6, 8
Lets go to the Back-to-Back Rule First
The Even Side of 15 is backed up by
The Odd Side of 16
So it wasn't as simple
as converting Aisle 15 to Food
We had to consider the segregation rule
When we converted an "Aisle" to Food
We had to take Even side of Aisle 15
and the odd side of Aisle 16
The other method used was for "combo" aisles
Even side is on the West
Odd side is on the East
It has 100 locations
Odd side goes 1, 3, 5, 7
Even side goes 2, 4, 6, 8
Non-Food would be...
1, 3, 5, 7 Empty pallet space (9)
2, 4, 6, 8 Empty pallet space (10)
Then Food would be...
11, 13, 15, 17
12, 14, 16, 18
Without knowing HOW much
Without knowing WHEN
This was our dance
Bleeding out an aisle
To convert it for other use
Is not something you do in a shift
It takes SEVERAL
Remember I said CAN'T
You get NO passes with food segregation
I had TWO FRIENDS that helped me out
Partial Aisles and
Empty Aisles
We started compressing the freight
We had dynamic slotting
Another dance move
We HAD to keep our eyes peeled
Food is something that came in regularly
But we had to pay attention to the velocity
It was 6.25% of our footprint (for YEARS)
(1/2 of ONE of the EIGHT zones)
100/8 = 12.5% (half that)
Food ended up doubling in the Rack
In the Bulk Aisles, it was only ONE
And ballooned to SIX
Remember
We went up
Before we went out
We didn't need MORE space
We needed to understand
Our product
By avoiding unnecessarily opening up aisles
for the influx of 2 foot tall Non-Food Pallets
We had room for the influx of Food Pallets
Knowing your product
Ain't just some cute phrase
It's gonna require some strategy
There's a BIG difference
Between every aisle being full
And every aisle having something in it
Let's take a look, shall we?
Getting Warehouses MORE thruput using the SAME hours.
I offer a complimentary 30-minute discussion to walk through what that looks like for you.
#strategy
#business
#creativity
#innovation
#xpandurangeamotion
Managing Partner at Spartan Partners
9moPlease be mindful, the debate is also being grossly oversimplified. Woolworths / Coles do not purchase most of their products direct from farmers. Instead they purchase via established wholesale markets. Watch Landline for insight on the immense price volatility of many items. Separately, we shouldn't be looking at profit. We should be looking at Gross Profit Margin (difference between what Woolworths / Coles purchase items and what they sell). Price gouging for me relates to a sudden increase is gross profit margin. This hasn't taken place. - Wooworths 29.7% (preCovid it was 29.1%) - Coles 25.9% (preCovid it was 25.8%)