Background
This Telstra business unit controlled all inventory items nationally, primarily at the Springvale site in Melbourne and Greenacre in Sydney.
Business Challenge
Telstra required a national distribution and warehouse management solution integrated to their corporate legacy applications to streamline and manage the inventory transactions for the organisation.
The efficiencies in the Warehouse were extremely low due to the lack of information relating to the products, stock turns, movement rates etc. Additionally, the materials in Melbourne were housed across three warehouses – with minimal focus on movement frequencies and space management.
Results
A Warehouse Management System was designed and deployed with a Project Manager managing the application development and design streams for the project, while the physical environment and sub contractors were managed by a logistics specialist engaged by Telstra.
Analysis was conducted on stock turns and movement frequencies, resulting in the physical space reduction in Melbourne from 3 warehouses to a single warehouse, thereby freeing up valuable Real Estate which was sold off to realise the capital value. The number of staff located at the main facility in Springvale was dramatically reduced with greatly increased productivity. Thousands of inventory lines were discontinued and disposed of following analysis of stock turns and future requirements.
The system was rolled out nationally and serviced the business until TNT took over this function 10 years later.
