2023 BEST PRACTICES AWARDS

Best Distribution / Warehouse Innovation

by Krystina Skibo

16

n April 2022 , the Idaho State Liquor Division ( ISLD ) was approaching full capacity in the current warehouse facility — 98 % capacity . The team quickly needed to determine facility options and fix current capacity issues for continued growth . “ Immense growth in the Gem State ’ s population coupled with the pandemic exposed gaps in our warehouse operations ,” says Jeff Anderson , Agency Director , Idaho Lottery and Idaho State Liquor Division . “ Volumes increased substantially over the last several years . It appeared we were reaching capacity in our distribution center , prompting discussions about the need for a new facility .”

To maximize space in the warehouse , the ISLD evaluated short- and long-term goals . The first step in this process was to manage inbound freight with Open Dock , an online freight scheduling system , in July 2022 . This platform allows Supplier / Logistics Companies to schedule their own appointments and lock in future appointments to maintain inventory levels .

With this new system , the ISLD requires suppliers to include load information with their appointment . The agency team then reviews all truckloads 14 days prior to arrival to ensure they are not receiving anything in excess .

Through the system , the ISLD has been able to stop suppliers from shipping items to fill a truck , and focus on inventory that is needed in the warehouse . It has also been able to track supplier freight performance through the data collected in Open Dock , which will be a tracking tool and data source for the agency ’ s upcoming Scorecard .

The ISLD was able to get ahead of loads with unnecessary inventory meant to “ fill the truck .” The warehouse team also utilized the annual inventory audit to rerack and install new racks in the warehouse to add 141 more locations . This makes a total of 1,447 locations .

In the most recent phase of maximizing warehouse space , the ISLD ran data on which items were overstocked , and how many additional warehouse locations they were occupying . It deemed this excess inventory and required suppliers pick up the products , getting levels down to six to eight weeks of inventory .

“ Team Idaho Spirits is innovative and willing to try new approaches ,” says Anderson . “ By listening to other control states and incorporating their best practices , such as supplier scorecards and investing in an online freight scheduling system , we have extended the life of our facility in a meaningful way .”

“ We changed our racking that improved picking flow , reinforced limits on bailment inventory and instituted direct-to-store-delivery for nearly all items that can be delivered by private-sector wholesalers ,” Anderson adds .

The ISLD started with 232 SKUS / 491 excess pallets in February 2023 and has been able to reduce this by 90.23 % in excess pallets and 89.23 % in total SKUS , for a total of 25 SKUS / 48 excess pallets . The total cases were lowered to 81 % capacity at the conclusion of March 2023 and has reached a capacity of 76.55 % today .

The ISLD ’ s future in this space has been extended by the efforts , while the team strategizes for future growth in distribution and what the facility needs will become .

“ These combined efforts created 20 % more space in the warehouse . It ’ s a big number ,” Anderson says . “ Credit goes to our procurement and distribution team . The collaboration of many saved the state valuable resources .”

StateWays | www . stateways . com | Fall 2023