Storage Locations Optimization Practice within Industrial Company

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MAGAZINE №4 (81) August 2017


CATEGORY  Industrial companies’ corporate logistics Warehouse logistics



 Post-soviet industrial companies often have archaic warehouse system. The production integrity and safety was key goal of provision system in that time. Nobody took care of production stock storage efficiency. Nowadays new owners of those companies started to look after stock management and storage capacity performance.
In addition, there are processes of building vertical integrated chains of enterprises. As usual, within such processes, it is resolving issue of storage locations termination or modernization of raw materials, semi products or spare parts. On the other hand, there are risks of production integrity, health or environmental safety, especially on dangerous production lines, in case of storage location operations termination, increasing of downtime. Therefore, storage locations release should be completed with the consideration of those risks. The article describes practical example of storage locations reduction on continuous production plant. The practice has been applied within the project of provision system optimization and can be useful for great variety of companies.

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