Borland International’s Distribution Center Retrofit
Borland International, Inc., founded in 1983 by Philippe Kahn, is a pioneering software company that made its mark by developing innovative tools for programmers and corporate software users.
From Chaos to Efficiency: How Borland Revolutionized Warehouse Operations with a $150K Retrofit
The Challenge
Rapid growth and acquisitions led to increased order volume and SKUs, straining the existing warehouse. Inefficient storage and picking methods resulted in low productivity and congestion.
Borland International’s rapid expansion, fueled by significant sales growth and the acquisition of Ashton-Tate, created a surge in order volume that quickly overwhelmed their existing distribution center. The doubling of sales within two years, coupled with the integration of Ashton-Tate’s product line, resulted in a dramatic increase in the number of stock-keeping units (SKUs) that needed to be managed. This sudden proliferation of products placed immense pressure on the warehouse’s capacity, which was originally designed for a much smaller scale of operation.
The strain was further exacerbated by a shift in their customer base. Borland’s successful Direct Marketing Program led to a significant increase in direct-to-consumer orders, which typically consisted of single-line items. This change meant that the warehouse was now processing a much higher volume of smaller, more frequent orders. The existing storage and picking methods, which relied on traditional pallet racking and manual picking with carts, were ill-equipped to handle this new demand. The system’s inefficiency became glaringly apparent as the warehouse struggled to keep pace with the influx of orders, leading to delays and potential customer dissatisfaction.
Furthermore, the existing storage layout contributed to significant congestion and low productivity. The use of traditional pallet racking, where active stock was stored on the bottom level and reserve inventory on the upper levels, resulted in limited pick faces and increased travel distances for order pickers. Workers had to traverse long aisles to retrieve items, significantly slowing down the picking process. The combination of reserve and active storage within the same racking system also created bottlenecks, as picking and replenishment activities often overlapped, leading to further delays and confusion. The wide aisles, necessary for forklift operation, further reduced the available space for staging and processing orders, compounding the congestion problem.
Photo Suggestion (Problem Section):
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The Solution
Reconfigured existing pallet racking with carton flow racks, increasing pick faces and density. Separated picking and replenishment aisles to reduce congestion. Implemented a U-shaped flow pattern and a low-pressure accumulation conveyor for efficient order processing. Integrated a bar code and computer-based inventory control system for accuracy.
To address the growing inefficiencies, Borland opted for a strategic retrofit of their existing distribution center, rather than constructing a new facility. A key component of this retrofit was the reconfiguration of the existing pallet racking. By removing the bottom-level load beams and replacing them with carton flow racks, they significantly increased the number of pick faces per rack bay. This transformation allowed for a much denser storage configuration, enabling the warehouse to accommodate a greater variety of SKUs within the same footprint. This change also brought a significant productivity boost as pickers now had access to a larger number of items within a smaller area, reducing travel time and increasing pick rates.
To alleviate congestion, Borland implemented a clear separation of picking and replenishment aisles. By dedicating specific aisles for picking and others for replenishment, they eliminated the conflict between these two activities. This separation not only streamlined workflows but also allowed for the narrowing of picking aisles to just four feet, further maximizing storage space. Replenishment aisles, which accommodated lift truck traffic, were maintained at a wider width.
The flow of materials was further optimized by rotating the rack structures 90 degrees, creating a U-shaped flow pattern. This design minimized travel distances and facilitated a more efficient movement of orders through the warehouse. To further enhance order processing, a low-pressure accumulation conveyor was installed in the packing and staging area. This conveyor, which doubled as a sortation system, directed orders to specific shipping destinations, streamlining the packing and loading process. A skatewheel conveyor was also integrated to expedite loading directly into trailers at the loading dock.
Finally, Borland implemented a new inventory control system that combined bar codes and computers. This “closed loop” system provided real-time tracking of orders throughout the facility, minimizing errors and ensuring accurate order fulfillment. A two-step verification process, involving bar code scanning and automated weight checks, further enhanced order accuracy, ensuring that customers received the correct products.
Key Solution Components:
- Carton Flow Rack Implementation:
- Increased pick face density.
- Improved picking efficiency.
- Aisle Separation:
- Dedicated picking and replenishment aisles.
- Reduced congestion.
- Optimized aisle widths.
- U-Shaped Flow Pattern:
- Minimized travel distances.
- Streamlined material movement.
- Conveyor System Integration:
- Low-pressure accumulation conveyor for sorting.
- Skatewheel conveyor for efficient loading.
- Inventory Control System:
- Bar code and computer-based tracking.
- Two-step verification for accuracy.
Photo Suggestion (Solution Section):
- Description: A clean, organized warehouse aisle featuring carton flow racks. Show workers efficiently picking items from the racks. A conveyor system should be visible, transporting packages. Show a worker using a handheld barcode scanner.
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The Results
Doubled picking productivity (from 67 to 156 picks per hour). Increased storage efficiency. Reduced order processing time from 2-3 days to 24 hours. Improved order accuracy through a two-step verification process. The project was completed for under 150,000 dollars.
The comprehensive retrofit of Borland’s distribution center yielded remarkable results. The implementation of carton flow racks and the optimized layout effectively doubled picking productivity, increasing the average pick rate from 67 to 156 picks per hour. This significant improvement translated into faster order processing and enhanced customer satisfaction. The reconfigured racking system also resulted in a substantial increase in storage efficiency, allowing the warehouse to handle a larger volume of SKUs within the same space.
The streamlined workflows and the new inventory control system significantly reduced order processing time. Orders that previously took two to three days to process were now completed within 24 hours, earning Borland the moniker “Out the door in twenty-four.” This dramatic reduction in cycle time improved order fulfillment speed and enabled Borland to meet customer expectations for timely delivery.
The two-step verification process, combining bar code scanning and automated weight checks, significantly improved order accuracy. This meticulous approach ensured that customers received the correct products, minimizing errors and enhancing customer satisfaction. The success of the project was further underscored by its cost-effectiveness. The entire retrofit was completed for under $150,000, demonstrating that significant improvements could be achieved without substantial capital investment.
Photo Suggestion (Results Section):
- Description: A photo showing a busy shipping dock with packages being loaded onto a truck. Show a digital display indicating high order fulfillment rates. A close up of a worker scanning a package, and a close up of a scale weighing a boxed shipment.
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Key Strategy
The company focused on optimizing existing infrastructure with traditional materials handling equipment, rather than investing in a completely new or highly automated system, prioritizing flexibility and cost-effectiveness.
Borland’s strategic approach to warehouse modernization prioritized flexibility and cost-effectiveness by focusing on optimizing existing infrastructure rather than investing in a completely new or highly automated system. This approach was driven by the company’s rapidly changing business environment, which demanded a high degree of adaptability. By leveraging traditional materials handling equipment, such as flow racks and conveyors, Borland was able to achieve significant improvements in productivity and efficiency without incurring the substantial costs associated with a full-scale automation project or a new facility.
The decision to reconfigure existing pallet racking with carton flow racks demonstrated a commitment to maximizing the use of existing resources. This approach not only minimized costs but also allowed for a more rapid implementation, as the company did not have to wait for the construction of a new facility or the installation of complex automation systems. By focusing on optimizing existing workflows and leveraging proven technologies, Borland was able to achieve a significant return on investment while maintaining the flexibility necessary to adapt to future changes in their business.
Photo Suggestion (Key Strategy Section):
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