Bringing McCormick Distribution In-House

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Bringing McCormick Distribution In-House

McCormick is the world’s #1 spice maker and produces an additional assortment of marinades, sauces, extracts and flavorings.

Project Objectives/Challenges

McCormick needed assistance to insource fulfillment operations into an existing owned warehouse attached to its South Bend, IN manufacturing plant. Fulfillment and storage for the condiment business was managed by two 3PL provider facilities.

McCormick hired Sedlak to bring distribution operations in-house from two different 3PL providers. They also engaged with Sedlak to resolve capacity issues in their distribution network.

McCormick made the decision to bring the operations in-house, utilizing a warehouse attached to its existing manufacturing plant

Needed assistance in planning the integration of fulfillment operations

What Sedlak Did

Established baseline operations and fulfillment requirements for the new operations

Evaluated alternative concepts for storage and product handling

Designed a new consolidated fulfillment center

Developed conceptual design and operational methodologies, staffing requirements and preliminary layout for recommended concepts

Integrated warehouse pallets and volumes at both 3PL sites with the existing pallets and volumes at the manufacturing facility

Prepared detailed design drawings and specifications for building modifications, material handling equipment

Managed competitive bid process for all MHE

Results

McCormick implemented the newly designed facility, providing savings in transportation, operations and labor.

Overall design accommodated business requirements over a 5-year planning horizon, with expansion options beyond.

New design expanded facility by 50,000 sq. ft. and successfully integrated manufacturing and distribution operations.

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