Distribution Center Relocation – 2025

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Distribution Center Relocation – 2025

Executive Summary

In 2024, JEC Consulting Services partnered with a global skincare company to manage the relocation of its distribution center from Dayton, NJ to Cranbury, NJ. The project, which spanned April to September 2024, was driven by the need for greater capacity, scalability, cost savings, and automation. The successful move resulted in increased capacity, reduced fulfillment time, improved customer satisfaction, enhanced logistics perception, and a safer environment for associates.

Background and Strategic Rationale

The client, a global skincare leader, faced significant challenges at its Dayton facility, including space constraints, inefficient layouts, lack of advanced systems, lease expiration, rising costs, and safety incidents. These issues threatened operational continuity and customer service levels.

Key drivers for the move included:

  • Growth projections requiring expanded capacity
  • Strategic location closer to customer bases
  • Technology upgrade opportunities, including a new Warehouse Management System (WMS) and a three-tier pick module
  • ESG and sustainability initiatives to reduce environmental impact

Scope of Relocation

  • Old Facility: 160,000 square feet, primarily manual processes
  • New Facility: 300,000 square feet, featuring automated work areas
  • Functional Areas: Receiving, put-away, storage, picking, packing, shipping, office, and IT

Project Team & Stakeholders

  • Project Leadership: John Curtis, JEC Consulting Services
  • External Partners: Racking vendors, electrical, plumbing, HVAC, structural engineers, construction vendors, automation integrators
  • Stakeholder Groups: Customers, suppliers, carriers, warehouse staff

Execution Plan

A meticulously planned, phased approach was adopted:

  • Phased Move Strategy: Developed a 425-point move plan, splitting the relocation into two distinct timelines.
  • Technology Migration: Seamless transition to a new WMS, RF systems, and integrations.
  • Inventory Transfer: Product sequencing, slotting, labeling, and transport via 165 53’ trailers.
  • Risk Mitigation: Contingency inventory, robust communication protocols, and ongoing monitoring.
  • Labor & HR Strategy: Retention incentives, targeted hiring and training, and enhanced safety and compliance programs.

Video Evidence in Packing Orders

A critical enhancement during the relocation was the implementation of video evidence in packing orders. Wearable cameras and fixed recording devices were deployed at packing stations, allowing workers to document each step of the order assembly process. This ensured that every item picked and packed matched the original specifications, minimizing the risk of errors and discrepancies. The resulting audit trail enabled the company to address claims of incorrect shipments with confidence, as every action was verifiable and transparent.

Award & Implementation

The initiative resulted in a smooth transition to the new facility, with minimal disruption to customer service. The project delivered improved order accuracy, reduced cycle times, optimized labor costs, and increased capacity utilization.

Video Recording for Shippers

To further enhance operational transparency and accountability, video recording for shippers was introduced at loading docks and shipping areas. This technology enabled real-time monitoring of goods as they moved onto outbound trucks, providing indisputable documentation for quality control, dispute resolution, and process improvement. The footage served as an objective record, supporting claims management and ensuring the integrity of every shipment.

Results & KPIs

  • Order Accuracy: Improved due to automated processes and video evidence
  • Cycle Time: Reduced as a result of streamlined operations and automated picking
  • Labor Cost: Optimized through efficient workflows and reduced error rates
  • Capacity Utilization: Increased with the larger, automated facility

Customer Impact

  • On-Time In-Full (OTIF): Enhanced delivery performance
  • Net Promoter Score (NPS): Improved customer satisfaction
  • Customer Satisfaction Metrics: Positive feedback on order accuracy and transparency

Lessons Learned

  • What Worked: Comprehensive planning, phased execution, and technology integration
  • Surprises: Minimal disruption to customer service during the transition
  • Recommendations: Early adoption of video evidence technologies to ensure accuracy and reduce claims

Developed Visuals

  • Site Map and Layout Drawings
  • Before/After Photos
  • Gantt Chart and Milestone Timeline
  • KPI Dashboards
  • Process Diagrams

Tools Utilized

  • 425 Bullet Point Move Checklist
  • Stakeholder Communication Plan
  • Risk & Mitigation Register
  • Contractor/Vendor List
  • Final Closeout Report and Detailed Punch List

Conclusion

The successful relocation of the distribution center, managed by JEC Consulting Services, demonstrates the value of strategic planning, advanced automation, and the integration of video-based solutions. Video evidence in packing orders and video recording for shippers played pivotal roles in enhancing order accuracy, reducing disputes, and building customer trust. These technologies, combined with robust project management, have set a new standard for operational excellence and customer satisfaction in the logistics and fulfillment sector.

About JEC Consulting Services

JEC Consulting Services is a business consulting firm specializing in supply chain assessment, management, and transformation. With decades of industry experience, JEC Consulting Services helps clients achieve measurable improvements in their supply chain operations through advanced technology integration and proven methodologies.

Contact Information

John Curtis
Phone: (443) 392-2444
Email: jecconsultingservices@outlook.com