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Warehouse Optimization Case Study

Cequent partnered with Associated to Improve Efficiencies and Reduce Operating Costs Cequent Towing Products is the parent company of Draw-Tite, Hidden Hitch and Reese, as well as new brands ROLA, Tow Ready and 5th Gear. Collectively, these brands represent well over 155 years of towing expertise and performance. With over 500 employees located around the United States and the world, they form the largest and most well-known towing products manufacturing and sourcing company in the recreational towing industry. Cequent recently partnered with Associated, to uncover opportunities that would allow them to optimize their warehouse in South Bend, Indiana. To begin this process Associated performed an Operational Efficiency Analyses at Cequent's facility. This data driven analysis was performed to evaluate Cequent's unique business needs and resulted in real world, actionable recommendations to optimize labor, storage resources and material handling equipment. Associated provided Cequent with alternatives that would allow them to capitalize on opportunities to improve efficiencies and reduce operating costs. Based on these recommendations Cequent opted to reconfigure their storage layout, adjust their fleet mix, and reduce process bottlenecks through the use of automation to optimize their fulfillment operation. Ron Dill, Distribution Center Manager at Cequent Consumer Products, said "We had a feeling that the fleet makeup would change, but when we sat down with the engineering team and laid out for them where our primary pick faces were, we changed the composition primarily away from order pickers to single walkie riders." In addition to the process enhancement solutions, Associated recommended Fleet Management to further improve their truck and operator performance. The fleet is now equipped with the industry's most advanced fleet optimization tool, Raymond's iWarehouse. This system allows Cequent to operate with greater effectiveness and cost efficiency by providing them with real time visibility to numerous data points. They can now evaluate and immediately act upon information that directly results in operational and bottom line improvements. Given Cequent's focus on sustainability, they also choose to employ opportunity charging for lift truck batteries, replacing a former battery changing system. "Certainly in any warehouse operation, battery changing and charging is a big concern. You have the safety concern of maintaining a battery room, of potential spills, of potential dropping the battery, of damaging a battery coming in and out of a piece of equipment, and just the floor space that a battery room ties up. Plus the cost of the batteries. So, with using the opportunity charging, every truck has one battery in it, we charge at lunchtimes and we charge between shifts, but we've not had to change a battery here since early 2010", said Ron. Another major solution provided by Associated was an extendable conveying system that allowed Cequent to save additional labor costs by improving the efficiency in the unloading of import containers in receiving. Ron said, "The Associated engineering team put together a powered receiving conveyor solution for us that we installed this year and we've noticed about a thirty percent decrease in unloading time, both in labor and time in the door for hand unloading a container." The results of the integrated solutions Associated provided have helped Cequent to optimize their storage and order fulfillment operations.