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Challenges. Kellogg Company needed to increase distribution efficiency and contain operating costs Needed the most cost-effective and flexible storage and rack strategy for a new super DC on the West Coast
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Challenges • Kellogg Company needed to increase distribution efficiency and contain operating costs • Needed the most cost-effective and flexible storage and rack strategy for a new super DC on the West Coast • Desired better leveraging of their large investment in a suite of supply chain software and technologies Kellogg is the #1 US cereal market. Among their well-known brands are Frosted Flakes, Corn Pops, and Rice Krispies; as well as snacks and cookies (Keebler and Famous Amos), along with convenience foods such as Eggo waffles and Nutri-Grain cereal bars. What Sedlak Did Results • Designed a facility layout for a new distribution center, adding to Kellogg’s network of seven existing facilities • Evaluated the efficacy of voice recognition and pick-to-light technology for picking • Developed a supply chain IT strategic recommending (1) ways to use the warehouse management system to manage the operations more efficiently and (2) implementing a workforce optimization module • Facility design with a cost-effective and flexible storage and rack strategy–a model for rollout network-wide • IT strategy: $15 million in potential savings from better use of software