Retail and E-commerce
Problem Statement
The Canadian Tire warehouse in Coteau-du-Lac, operated by FedEx, faced increasing operational inefficiencies in material handling and inventory movement. Traditional manual processes led to:
- Delays in order fulfillment due to inefficient workflows.
- High labor costs and workforce dependency for repetitive material handling tasks.
- Congested warehouse traffic, affecting productivity and increasing the risk of errors.
- Limited scalability, making it difficult to handle peak demand periods efficiently.
To enhance warehouse automation and optimize supply chain efficiency, FedEx needed an automated material handling solution that would reduce reliance on manual labor while improving productivity and accuracy.
Approach & Analysis
To tackle these challenges, our team implemented a strategic Automated Guided Vehicle (AGV) system to streamline warehouse operations. The approach included:
Site Analysis & Process Mapping
- Conducted warehouse workflow analysis to identify key bottlenecks and inefficiencies.
- Mapped out material flow patterns to determine optimal AGV integration points.
- Evaluated existing infrastructure to assess compatibility with automation.
AGV System Implementation & Integration
- Designed and deployed AGVs for automated transport of goods across different warehouse zones.
- Integrated AGVs with FedEx’s warehouse management system (WMS) to ensure real-time tracking and seamless inventory movement.
- Developed a dynamic routing system for AGVs, optimizing paths to reduce congestion and enhance efficiency.
Safety, Scalability & Change Management
- Implemented safety protocols for AGV-human interaction, ensuring smooth operations without disruption.
- Designed a scalable AGV deployment strategy, allowing for future expansion based on demand fluctuations.
- Trained warehouse personnel on AGV operations, troubleshooting, and maintenance to ensure long-term sustainability.
Outcome & Impact
The implementation of AGVs at the Canadian Tire warehouse in Coteau-du-Lac resulted in significant operational improvements, including:
- 30% increase in order fulfillment speed, reducing turnaround times.
- Reduction in manual labor costs, allowing workforce allocation to higher-value tasks.
- Optimized warehouse traffic flow, minimizing congestion and improving safety.
- Seamless WMS integration, ensuring real-time inventory tracking and automated replenishment.
- Improved scalability, enabling the warehouse to handle peak demand efficiently.
By successfully integrating AGV technology, this project transformed FedEx’s supply chain efficiency at the Canadian Tire warehouse, setting a new standard for automated logistics solutions.