Case Study – Warehouse Optimization for a Spare Parts Warehouse – Inventory Efficiency & Faster Fulfillment

Recommendation: Reorganize the řepov site into two zones: a high-turnover area near packing and shipping, and a flexible replenishment area for reserve stock. Use product families to guide pallet layout, implement fixed replenishment cycles, and align operators around short, metric-driven tasks. Target a 25-30% faster pick-to-ship cycle and reduce stockouts by 15% within three months.

Data-driven decisions guide the rollout: zone-based layout improves area utilization and increases 柔軟性 にとって european facilities; uses real-time media dashboards to support decisions.その goal is to minimize travel time and optimize replenishment frequency, using dynamic slotting and cross-docking where feasible.

について site relies on simple, visible media displays in the control room; operators get real-time alerts when a replenishment is due. The organisation rotates tasks to balance workload under peak pressure, with shift planning to cover busy periods.

Storage uses compact pallets in a high-density area while preserving accessibility for spare parts; pallets are color-coded by product and criticality. The facilities team uses standardized racks and data that explains every movement, ensuring traceability across the supply network.

Then the model explains the impact of decisions on cost-to-serve and lead times, showing how replenishment cycles, staff training, and organisation changes reduce pressure on planners and improve service levels for the european market.

Case Study: Warehouse Optimization for a Spare Parts Warehouse

just deploy a state-of-the-art picking zone that uses carousels for fast-moving parts and a high-density racking layout, integrated with a robust WMS, and run a 90-day pilot in opened warehouses to validate gains before a broader rollout.

The network handles thousands of SKUs across varying sizes, with counts tracked daily. The goal is to cut travel, reduce waste, and lift satisfaction among dealers and manufacturing partners by delivering parts faster and more reliably where demand concentrates.

• Slotting and zone design

  • Velocity-based slotting: A-items sit in carousels or quick-access bays; B-items occupy mid-level racking; C-items move to bulk shelves near the dock. This layout lowers travel and speeds picks.
  • Size-aware placement: smallest parts stay in compact carousels; larger items stay on near-dock racks to shorten handling time and protect part quality.
  • Maximum density plan: carousels cover 40–50% of fast movers, delivering 20–30% drop in average travel distance in active zones.

• Carousels, racking, and systems

  • Carousels enable fast access for the top 20–30% of SKUs by volume, while tall racking increases vertical density without expanding floor area.
  • High-density racking with modular bays supports rapid re-slotting as demand shifts, keeping inventory in line with needed counts.
  • Systems integration links picking activity to real-time counts, ensuring errors surface quickly and waste stays low.

• Inventory controls and counts

  • Daily cycle counts target 8–12% of SKUs, with spot checks on high-risk parts. The goal is 99.8% counting accuracy across the network.
  • Reorder points and safety stock are tuned by part class and supplier lead time to reduce stockouts and pressure on carriers.
  • Barcode or RFID scanning drives visibility, enabling near-to-real-time updates in the systems and faster reconciliation.

• Manual vs automated picking

  • Manually handled zones focus on accuracy for slow movers, while carousels handle high-volume, high-turn SKUs.
  • Training emphasizes fast, accurate picks and gentle handling to minimize damage and waste.
  • The team is willing to adjust layouts based on feedback from dealers and opening success stories.

• Sharing and collaboration

  • Sharing data with dealers and network warehouses informs slotting and replenishment, improving service levels where demand clusters happen.
  • Examples from cases show shared learning reduces travel and speeds fulfillment across the supply chain.
  • This approach strengthens relationships with manufacturers and suppliers, lowering lead-time pressure on parts needed for manufacturing and repairs.

• Measurement, milestones, and outcomes

  • KPIs tracked include order fill rate, pick rate per hour, travel distance, and waste reduction per week.
  • Example: after the pilot, average travel per order dropped by 38%, and pick density increased by 2.1x in carousel zones.
  • Case studies across opened warehouses show shortened travel, improved satisfaction for dealers, and more predictable service levels.

Implementation steps emphasize quick wins and long-term stability. Start with a focused zone migration in one opened warehouse, validate the impact on counts and travel, then scale to other warehousess and dealers. Monitor part-by-part performance, adjust the slotting where needed, and keep the sharing loop active to sustain improvements across manufacturing and distribution partners. This approach drives waste reduction, faster fulfillment, and higher satisfaction across cases in the spare parts network.

Case Study: Spare Parts Warehouse Optimization – Inventory Control, Space Utilisation, and Fast Fulfillment

Begin with a three-zone layout that places fast-moving spares near the dock and edges of the picking area, reducing travel by up to 180 feet per order and enabling shipped items within 24 hours for 95% of daily demand. Align this with a cross-dock approach for high-volume cases and a dedicated parcel line for small items that travel quickly through the site. This placement makes it easier to track volume and cycle through orders without slowing the overall flow, which is critical for automotive spares that arrive from global suppliers and are supplied to dealerships and workshops.

The change hinges on precise slotting and a strong inventory control routine. Implement ABC analysis by volume and demand, assign top 20% of SKUs to Fast Fulfillment bays, and reserve the remainder for a Mid-Volume zone. Use barcodes and a real-time WMS to trigger reorders at defined points, which helps decide safety stock levels and reorder quantities. Those steps explain how inventory turns improved after the new slotting, with the site handling 25,000 line items and 600 top SKUs accounting for the majority of daily picks.

Space utilisation gains come from high-density racks and mezzanine storage that reach up to 23 feet (7 meters) in defined zones, plus optimized pick faces that reduce touchpoints. Allocate 40% of floor area to Fast Fulfillment and 60% to reserve and bulk storage, while maintaining clear lanes of 8 feet for safe movement. By grouping similar products with compatible handling requirements–such as bolts, bearings, and filters in adjacent edges of the same rack–the team can reach products faster and reduce case handling across the volume of spares that feed the automotive supply chain.

Inventory discipline underpins these results. Implement cycle counting with weekly audits, maintain accurate landed costs, and track supply by supplier group, including a global groupe of vendors. The system flags exceptions when quantities diverge by more than 0.5% of the published stock, which prevents overstocking and ensures those spares remain available when orders arrive. With a focus on those cases that flow through the site, teams can maintain accuracy and speed without sacrificing control of the overall portfolio.

Operational results highlight the impact of the new layout and controls. Order pick accuracy rose to 99.7%, pick frequency increased by 38%, and the average order cycle time dropped from four hours to roughly 90 minutes. The throughput shift, driven by slotting and dock-to-picker alignment, means more product shipped per hour and a higher fill rate for critical spares. The approach demonstrates that when teams decide to reorganise around demand and space constraints, fulfillment becomes faster and more predictable within the supply network.

Key implementation points for similar sites include: map demand by product family, assign dedicated spaces that reflect cross-docking needs, and establish clear ownership of which SKUs move between zones as demand shifts. Track metrics on a weekly basis to identify edges where efficiency gains plateau and adjust slotting accordingly. The case explains how a disciplined approach to layout, stock control, and process discipline can dramatically improve service levels and reduce handling across the global supply chain that distributes automotive spares to customers, dealers, and service centers.

Space utilisation and location management for spare parts

Implement fixed-location slotting driven by ABC analysis, placing high-turn spare parts near the packing dock to decrease picker travel and speed up fulfilment. The goal is to achieve a 25–35% decrease in average travel time within six months while maintaining current service levels. Assign sizes and packaging to zones that align with handling requirements. There are specific requirements for container sizes and weights that the layout must support. Currently, pick paths wander between zones, so this plan will allow faster access and reduce search time.

Build a location master: SKU, location code, dimensions, max stock, and replenishment triggers. Map sizes and dimension data to ensure every part fits the assigned slot. Define zone allocations (A for high-turn, B for mid-turn, C for slow movers) and keep related items in adjacent aisles to minimize travel distance. Use fixed rack footprints and label every location with a unique code to support fast validation during put-away and picking.

Coordinate with neovia and the manufacturer to standardize processes. The vice-president of operations endorses the plan, Schmidt leads the cross-centres sharing of best practices, and the team is willing to adapt to new ways. Sharing data on demand patterns and occupancy rates helps align capacity with forecasted requirements.

Applied steps include re-slotting current inventory to the new zones, updating the WMS to assign locations automatically, and training teams for change-ready routines. Reconfigurable shelving supports different sizes and weights, and vehicle paths are adjusted to reduce cross-traffic. Start a pilot in three centres, measure changes in pick accuracy, travel distance, and order cycle times, then implement refinements based on feedback.

Start with a controlled rollout to maintain consistency across centres, then scale to all facilities. Track specific metrics: decrease in travel time, increase in order throughput, and improvement in service levels for critical spare parts to improve efficiency. Ensure the process remains aligned with operational requirements and that everything is documented for future audits and continuous improvement.

How to choose a spare parts warehouse: criteria and decision factors

Choose a site with a scalable footprint near core markets and reliable transport access to minimize daily outbound time and maintain service levels.

• Location and market reach: pick a site that serves primary demand centers with quick access to highways, freight corridors, and near-border routes if applicable. Prioritize cross-dock potential to speed flow between inbound and outbound streams.
• Capacity and flexibility: ensure space that can be expanded through mezzanines or reconfigured bays without large capital outlays. Favor modular racking and flexible aisle layouts to handle mix of small parts and larger assemblies.
• Inflow and outbound flows: design for smooth receiving, rapid put-away, and high pick rates. Use dedicated staging areas for returns and restocking to avoid bottlenecks.
• Inventory visibility and control: require real-time visibility via a compatible WMS and ERP integration; implement clear labeling and ABC analysis to optimize stock placement and pick paths.
• Technology and process fit: look for mobile-enabled picking, barcode or RFID accuracy, and audit trails; support cycle counting and continuous reconciliation to keep data clean.
• Costs and energy efficiency: compare occupancy costs, utility rates, and maintenance; prefer energy-efficient lighting and climate controls that suit the asset mix.
• Resilience and risk management: assess power redundancy, fire protection, security, and business continuity plans; verify supplier diversification for critical components.
• Compliance and safety: ensure correct handling of hazardous or restricted items, proper labeling, and documented safety training for personnel.
• Pilot plan and validation: run a phased trial with real picking and packing tasks; track on-time fulfillment, accuracy, and cycle duration; collect operator feedback and carrier performance data.
• Decision framework and governance: build a scoring model that weighs proximity, capacity, cost, risk, and IT fit; perform scenario analysis for single-site versus multi-site arrangements; align with the long-term service strategy.

Bottom line: the chosen site should enable smooth transitions between inbound, stocking, and outbound activities, with a clear plan for scaling as demand shifts. In markets with strong logistics ecosystems, start lean and grow with additional mezzanine space and improved automation to capture faster fulfillment and lower handling costs over time. If you operate in Europe, select a partner with regional capability to support cross-border flows and standardized processes while keeping local compliance in focus.

Automation-friendly storage: integration with automated racking and shelving

Invest in automation-friendly storage by linking automated racking and shelving to your WMS and yard-control software. This direct integration reduces picker travel times, accelerates batch release, and provides real-time visibility across zones. In a year-long pilot at a spare parts warehouse, total travel distance fell 42%, packed order lines moved to the packing area 33% faster, and on-time release rose to 98%.

Choose a modular automated racking system with carousels and shelving that scales with demand. Carousels feed fast-moving parts to the pick face, while fixed shelves consolidate slow movers and bulky items. Map zones so each pick path is direct, minimizing slow detours, and configure batch picking with a single release to the packing line. The integration should offer API connectors to logwin or comparable providers to keep visibility high for the director and vice-president, and to support cross-border markets and vehicle-dock operations.

Implementation should proceed in three waves: audit SKUs by velocity, install the modular racking and carousels, then run a controlled cutover with parallel operation for a minimum of four weeks. Track time-to-pick, total touches, travel distance, and batch accuracy; dashboards should highlight exceptions and trends so the logistics team can act in real time. Expect a 25–40% improvement in overall throughput and a noticeable reduction in slow-moving stock as replenishment is automated and synchronized with manufacturing calendars.

Key highlights include faster deliver times, better stock visibility, and higher fill rates across all markets. The system must support rapid release of orders, reduce manual handling, and deliver a perfect balance between density and accessibility. By year’s end, the provider should report measurable gains in total efficiency, with the director-level reviews confirming that the automation aligns with corporate goals and competitive positioning.

Automate inventory management: WMS capabilities for spare parts

Implement a WMS with real-time visibility and mobile scanning to cut order cycle time by up to 25% in the first 90 days. Tie parts to batch identifiers so picked items stay compliant and recalls stay fast, especially for ceva-supplied SKUs and across regional lines.

Real-time scanning covers receiving, put-away, storage, picking, and packing, reducing manual counting errors and boosting visibility from dock to stock. Batch tracking and serialization help you handle high-volume parts with confidence and support faster improvements in stock accuracy.

Adopt targeted strategies: zone picking, batch-based waves, cross-docking for intra-regional flows, and dynamic storage that places smaller items near packing zones to shorten travel paths. This arrangement reduces stock drop and lowers handling time across your network.

The vice-president asked for improvements in cross-border fulfillment; weve defined a path that emphasizes intra-regional supply in benelux and enables direct handling at key sites such as herck and řepov. This setup supports faster picked orders and clearer visibility for every step in the process.

Plan phasing: install the WMS, integrate with ERP, roll out at two anchor sites first, then scale. Begin with receiving and put-away, then move to picking and packing, with a goal of 98% on-time fulfillment and inventory accuracy above 99%. Use a pilot batch with a limited range of SKUs to validate batch handling and scanning accuracy before broader spread.