Location: Cambridge, Ohio
Facility Size: 127,000 Square Feet
Ridge Tool, manufacturer of the Ridgid brand of hand and power tools for the plumbing, pipe fitting and HVAC markets was nearing the end of their lease and needed to review their options of either expanding the current facility or build a new facility in order to meet business demands.
The existing facility was 10 years old and the material handling system did not include any automation when it was opened. As business increased, the original material handling system was retrofitted with a conveyor system to improve efficiencies. The revised system was at the end of its beneficial use and would have to be replaced if the current building was expanded. Also, expansion of the building was limited and created a poor product flow in the building.
Trommer & Associates performed a Cost/Benefit Analysis of Expanding the existing building or building a new facility and determined that a move had a higher Net Present Value.
An additional study compared Ridge Tools distribution model to a 3pl distribution model. The study showed that it was more cost effective for Ridge Tool to continue their own distribution. The decision was made that Ridge Tool would continue to distribute their own product and build a new facility.
Trommer worked with Ridges A/E to design a facility that met the current distribution requirements and has a planned expansion for continued growth or other distribution opportunities. The new facility was fitted with a mix of storage media that increased capacity, flexibility and system throughput. A new conveyor and sortation system eliminated gridlock and allowed same day shipments.
Ridge Tool has experienced record sales, month after month, since the inception of the new system while utilizing less labor. Larger dock areas, better lighting and wider aisles have all resulted in greater throughput and better employee retention.
Additional benefits include:
Reduced labor in excess of 15%
Eliminated off-site storage
Reduced the open order time from days to an hour
Planned growth and expansion plans