Case Study: Facility design to increase capacity & performance in the Bogota site

Project Background

Our client was a Logistics and Postal Service Provider in LATAM. Their Bogota facility processed 33,000 parcels/packets in an average day with 60% of the inbound between 05:00-09:00 and 90% of the outbound between 19:00 and 22:00. The number for peak days was significantly higher, around 2,4x those of the average days. The manual sorting processes and loose loading resulted in poor service levels during peak seasons.

Limited expansion potential was challenging to design an automated system on the existing facility

Figure 1: Limited expansion potential was challenging to design an automated system on the existing facility

Objectives

The main objective for this project was to increase capacity for the parcel business in the Bogota facility. This included defining new sorting processes to be implemented across all facilities in Colombia and other cities in LATAM. In addition, we sought to identify new business processes and IT to support changes in the parcel sorting operations. Because the limited expansion potential made it challenging to design an automated system on the existing facility, we also needed to determine sizing requirements and possible technology solutions to support future growth.

Solutions

Yard Design

Expansion of docking area for a new total of 7,300 SQM (78.5K sqft)

Selected expansion alternative

16 Additional dock doors
Improved vehicle flow with 2 major access points (on opposite sides of the building)
Tanks and utilities outside remain in the same location
Remote employee and fleet parking

Additional access points to improve vehicle flow and avoid congestion points

Facility Design

Two to three parcel runouts per dock door significantly improved productivity & ergonomics for sorting and loose loading of parcels

Facility Design

Major Improvements from New Design

1. Parcel Sorter

The new Parcel sorter was over 3+ meters (10+ ft) high, had 50 dock doors and allows for non-conveyable flows underneath the conveyor. In addition, the new parcel sorter has the ability to absorb growth without adding headcount.

2. Packet Sorter

One packet sorter on mezzanine

3. Dock Area

4.5 Ton: 85 dock doors
8.5 Ton: 5 dock doors
12.5 Ton: 25 dock doors
Total: 115 dock doors

Results and Benefits

Design

Increased throughput capacity by almost 50% through better utilizing vertical space, balancing national and local flows during peak times, and automation

Organization

Developed communication for stakeholders and cross-functional alignment

Captured requirements and evaluated impact on changes in the logistics operations to the business processes

Safety

Improved employee safety through right sizing of constrained areas, handling of non-conveyables and separation of traffic and pedestrian flows throughout the site

Industry Experience

Implementation plan in phases, starting with optimized manual solution and expansion of dock doors, followed by scaling in automation to absorb future growth