Challenge
Kenco inherited a struggling operation in Salt Lake City. The 60,000 square-feet facility was disorganized and poorly managed, leading to numerous delivery and quality issues as the company’s e-commerce order volumes continued to grow. The site handles 27,000 unique SKUs and processes 6 million units per year, with a nearly 200% spike in outbound volumes during Black Friday/Cyber Monday. Kenco was tasked with improving throughput and establishing best-in-class service levels to support retail store replenishment, online order fulfillment, and nationwide parcel management.
Solution
Kenco’s integrated services solution – encompassing both distribution services and outbound transportation management – was qualitatively different. Using the operational excellence tools and methodologies that are integral to the Kenco Operating System (KOS), we managed to tackle the “low-hanging fruit” of poor visual management, poor inventory management, and late shipments. Kenco also leveraged our Best Practices group and the Kenco Innovation Labs to conduct a profile analysis and identify potential, next-level solutions in the areas of automation and robotics.
Results
Within one year, Kenco dramatically transformed the site into a showcase, best-in-class e-commerce fulfillment center, improving the site’s layout, inventory control, and labor management practices, leading to better KPI performance overall. Kenco continues to achieve best-in-class service levels and provides Fanzz with efficient order fulfillment, parcel optimization and auditing services, and end-to-end visibility with real-time reporting capabilities.
