Case Study: Transforming Distribution Center Performance for a Global Industrial Manufacturer

Breaking Through Operational Barriers to Growth

A global leader in industrial components and lubrication systems faced major setbacks in its North American distribution center (DC). Recently designed to streamline fulfillment and enable growth, the facility was underperforming within its first year, creating operational bottlenecks and customer service challenges.

Key issues included:

• Backlogged Orders & Delayed Shipments – A $25M order backlog, despite daily sales of $700K, was driving customer dissatisfaction.
• Automation Underperformance – The AutoStore system wasn’t meeting throughput and capacity expectations, limiting volume growth.
• Capacity Constraints – Originally designed for 2020 projections, the DC exceeded its limits within a year, creating space shortages.
• Operational Inefficiencies – Gaps in material flows, order consolidation, and pallet-building processes slowed execution.
• Labor Challenges – Process inefficiencies forced reliance on temporary labor, increasing costs and instability.

With growth targets ahead and customer expectations rising, the company needed a strategy to stabilize and future-proof its DC operations.

A Holistic Strategy for Stability and Scalability

Miebach led a structured, end-to-end transformation, optimizing processes, automation, and labor strategy to drive efficiency and resilience.

Stabilizing Operations & Driving Immediate Gains

• Conducted a full-scale gap analysis across storage, workflows, IT systems, and workforce management.
• Implemented quick wins to cut order backlogs, improve uptime, and streamline labor allocation.
• Optimized AutoStore performance with smarter replenishment, re-slotting, and picking strategies.

Optimizing Storage & Material Flow

• Redesigned storage layouts and material flows to maximize space efficiency and accommodate inventory growth.
• Evaluated footprint expansion and external inbound facility integration.
• Developed a roadmap to align warehouse layout, automation, and WMS configurations for seamless flow.

Enhancing Technology & Processes

• Strengthened WMS (Exacta) functionality with targeted process optimizations.
• Streamlined order release, replenishment, and consolidation for increased efficiency.
• Improved automation-system integration for smoother data flow.

Boosting Labor Productivity & Change Management

• Eliminated reliance on temporary labor with smarter workforce strategies.
• Delivered training to enhance employee adoption of new workflows and automation tools.
• Established performance metrics and dashboards for ongoing operational discipline.

A Future-Ready, High-Performance DC

The transformation drove measurable gains in efficiency, cost savings, and business agility.

Operational Excellence & Service Gains

+ Order backlog eliminated, enabling faster fulfillment and improved customer satisfaction.
+ Higher automation throughput reduced picking inefficiencies and increased inventory turnover.

Cost Savings & Scalability

+ Reduced labor costs by eliminating temporary staffing, enhancing workforce stability.
+ Optimized storage & flow, allowing the DC to absorb growth without immediate expansion.

Strategic Business Impact

+ Future-ready operations, positioned to support new product lines and higher order volumes.
+ Scalable foundation, ensuring long-term performance and resilience.

By transforming its DC operations, the company turned a struggling facility into a high-performing distribution hub, capable of driving business growth today and into the future.