A global machinery manufacturer with a $2B turnover was struggling with warehouse inefficiencies that directly impacted EBITDA, which stood at just 4%. Excessive manpower, inventory mismanagement, and poor picking accuracy were draining operational performance. With over 30,000 SKUs and an overstaffed warehouse, the company faced rising costs and stagnant output. Total Plant Setup introduced a Mobile Picking App solution, transforming their warehouse operations using Lean methodologies and digital automation—resulting in faster, smarter, and cost-efficient order fulfillment.
◾️ Over 30,000 SKUs led to disorganized storage and frequent part mix-ups.
◾️ 15% obsolete inventory increased holding costs and blocked valuable space.
◾️ Picking times were untracked and inefficient, with errors causing frequent returns.
◾️ Warehouse staffing was nearly 3X the industry benchmark, driving labor costs up.
◾️ A custom-built Mobile Picking App enabled real-time digital picklists and tracking.
◾️ Lean methods like 5S, VSM, RCA, and MUDA eliminated waste and streamlined flow.
◾️ Time-motion studies optimized layout and reduced worker movement.
◾️ Inventory was reorganized using FIFO and structured labeling for error-free picking.
✔️ 50% reduction in manpower while sustaining output and service levels.
✔️ 3X faster picking with 90% less time wasted on returns.
✔️ 2,500 sqm space saved through inventory rationalization and layout redesign.
✔️ EBITDA rose from 4% to 9%, boosting contribution from $50M to $112M.
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