Nutricia

Nutricia, a manufacturer of infant formula nutrition needed to centralize their stores and get greater control of the spare parts.

To achieve this they installed a Kardex Shuttle XP with Powerpick software.

This has allowed 106m² of floor space over four different areas to be consolidated into just one area with a footprint of 6.7m².

Nutricia - Savings and Justification.

• Prior to the installation - seven engineers spent on average 200 minutes per day retrieving spares.
• 15% of the spares could not be located at all and had to be re-ordered.
• Per year this equated to 833 hours spent by the engineers retrieving parts at a cost of £ 22,491.
• With the Kardex Shuttle XP installed, 50 minutes per day is spent retrieving spare parts.
• This equates to 208 hours per year at a cost of £ 5,616.
• An annual saving of £16,875.

Justification:
The company decided that three engineers picking at a cost of £114,000 could be replaced with three storemen at a cost of £66,000

• A £48,000 saving.
• The total of the two savings were £ 64,000 per annum.
• Payback period was approximately 9 months