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Project Data
Client: Global Biotech and Medical Technology Company
Location: Michigan, USA
Timeframe: 2 Months
Key Project Factors: Client had been experiencing significant growth over several years and was expanding their manufacturing operations (both existing and new product lines) to support the increased sales volume. The Company was able to sustain both manufacturing and distribution operations during this growth period within the existing facility footprint but began cannibalizing space allocated to distribution operations during this growth phase. CONTINUUM was tasked with seeking both immediate need efforts and long terms solutions to balance the growing manufacturing space and capacity needs of the client.
The Challenge
The client had major expansion within its new and existing product sales over a very short time frame and had foregone the necessary effort of a full space and capacity planning initiative for its manufacturing and distribution functions. Having not effectively planned current and future space requirements, examined beneficial network strategies, evaluated scalability of existing manufacturing operations or developed advantageous facility layouts and designs to support the increased volume impacts, the company was immediately challenged with running out of existing operational space within 6 months and not having a solid strategy to support the anticipated growth over the next five years. CONTINUUM was asked to evaluate the current and future operational space needs of both the manufacturing and distribution operations for a current to 5-year projection. In addition, the effort was focused on providing continued support to stabilize immediate need capacity and support go-forward plan implementation for the company.
The Approach
Understanding and analyzing the growing capacity needs of the client proved critical in providing tangible immediate and long-term options for senior leadership to consider and pursue; including options regarding space requirements for manufacturing operations, the necessary systems, processes, automation and robotics to support long-term, sustainable success and the required facility growth and expansion strategies needed around expanding manufacturing and distribution operations. Investigation and conceptual analysis of the distribution network was also performed to determine the alternative distribution strategies and supply chain network design recommended to drive beneficial impact to the overall manufacturing plans.
The Results
CONTINUUM initially performed a five-year space and capacity assessment for the client's operations including a useful life evaluation of current space availability and configuration. This ultimately led to an immediate, short-term solution to outsource distribution operations to a 3PL provider while using the newly vacated facility space to support manufacturing growth over a 6 month period. Facility selection and design services were leveraged to develop a manufacturing facility to support on-going growth for the client while a distribution network was planned to support the reintegration of DC functionality back into client operations.
