Scenario Overview
- Industry: Fresh cold chain / city distribution
- Region: South China, China
- Stores: 96
- Average daily turnover: approx. 18,000 cycles/day
- Products used: HDPE injection-molded mesh plastic crates (three heights: 360/390/420 mm)
Customer Pain Points (Before Retrofit)
- Old PP crates easily cracked at corners; stacking slippage caused frequent night-shift rework.
- Non-standard dimensions led to occasional jams on roller conveyors/turning sections.
- Slow washing and heavy water retention, creating pressure on odor control in storage.
- Empty crates occupied vehicle space, with low backhaul loading rate and high cost.
Solution
- Standardized crate types: three heights to cover different picking volumes.
- Structural reinforcement: HDPE injection molding; reinforced frame/corners, bottom ribs, chamfered handles to prevent hand injuries.
- Stacking/nesting: stable stacking when loaded; nestable empty crates (volume reduced by ~60%).
- Zonal management: color-coded by area (sorting/backstage/returns), batch labeling for inspection and traceability.
- Washing line validation: 50–55°C hot water + alkaline wash; passed drying test, ensuring fast wash & quick dry.
Implementation Process
- Weeks 1–2: small-scale A/B testing on two lines (covering 3 store clusters).
- Week 3: bulk delivery and team training, prioritizing replacement of old crates with >20% damage rate.
- Week 4: full warehouse switch, re-checked stacking height and vehicle loading plan, SOP finalized.
8-Week Comparison (After vs. Baseline)
| Metric | Before | After | Change/Notes |
|---|---|---|---|
| Crate damage rate | 2.6% / week | 0.8% / week | -69% |
| Night-shift rework | Baseline | -38% | Significant reduction |
| Stacking per pallet | 5 layers | 6 layers | +20% stacking height |
| Vehicle loading rate | Baseline | +12% | Improved backhaul capacity |
| Empty crate volume | 100% | 38% | -62% (nested return) |
| Washing cycle | Baseline | -28% | More stable at peak hours |
| Water consumption | Baseline | -22% | Less water retention |
| Labor hours | Baseline | -1.5 workers/shift | ~-320 hrs/month |
Operations Manager (anonymous):
“With standardized crates, night rework visibly decreased. Stacks are more stable, and we don’t need as many straps on trucks. Washing line keeps pace with weekend peaks, and nested empties save us an extra trip.”
Payback Period (Example)
- ≈ 5–7 months (comparing “crate investment cost” against monthly savings in breakage, rework, transport, and utilities).
- Formula: Payback (months) = One-time investment ÷ Monthly net savings.
Reusable Insights (For Other Warehousing/Distribution Scenarios)
- Start with 2–3 weeks of A/B testing, using four KPIs: breakage rate / rework orders / washing cycle / empty return volume.
- Multi-height strategy to reduce mixed-crate issues and jams.
- SOP standardization: stacking height, nesting method, washing temperature and alkaline ratio must be fixed before scaling.