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What it is
Warehouse Cleansheet is McKinsey’s proprietary tool to estimate costs of warehouse operations ‘within 4-walls’. Estimation is based on bottom-up model of all warehouse activities; thus, it’s ideally combined with warehouse visit
Calculates performance metrics
for ideal warehouse to identify improvement potential in current warehouse operations
Normalizes results based on individual warehouse factors and provides comparison on the level
of key warehouse processes
Applied to variety of situations: assessment of warehouse, logistics provider tendering and negotiation, network redesign and warehouse savings potential estimation
Key deliverable is a detailed benchmarking report with a comprehensive list of KPIs and a precise cost comparison between clean sheet and current cost
How it works
Performance metrics are calculated based on detailed input parameters and granular modelling of processes in the warehouse
Data collection and input
Fill data collection template
Input parameters including volume drivers and assumptions
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Calculation
Bottom-up model for each major warehouse process
Detailed calculation of target warehouse cost based on detailed analytical model of warehouse operations
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Determine ideal metrics
Per warehouse process (e.g., total operating cost, number of FTEs, space, CAPEX)
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Lever identification
Conduct benchmark analysis and lever identification based on performance gap
Derive measures to close gap
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What the output looks like
Holistic warehouse cost analysis
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Warehouse labor cost deep dive
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Warehouse space analysis deep dive
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Warehouse Cleansheet has delivered
Warehouse Cleansheet has conducted over 1,100 assessments across geographies and industries
Warehousing projects by geography
Projects by industry(%)
Warehouse Cleensheet enables a warehouse cost reduction of typically 10-30%
Typical improvement identified by industry sector
Percent of total warehouse costs
1. Logistics Service Provider
Here are some client examples
A global medical consumables manufacturer identified 20-60% savings potential across all sites by applying Warehouse Cleansheet
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A major pharmaceuticals company identified ~28% savings potential and defined levers to roll out by Warehouse Cleansheet diagnostic
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A major CPG player defined fact-based negotiation with 3PL and negotiate competitive prices by leveraging Warehouse Cleansheet
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A leading grocery retailer realized one of the largest and most complex logistics project in Eastern Europe on budget with EBITDA improvement of >20m EUR p.a
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An automotive client identified 20-40% saving opportunities on labor, space and equipment leveraging warehouse cleansheet
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By working with us, you will have access to
Experts
Our industry and functional experts will be on the ground where and when you need them.
Helpdesk
Our helpdesk will keep doors open and commit to addressing your concerns efficiently and effectively.
Training
We offer coaching and build capabilities for your teams to deliver sustained improvements.
Implementation
We partner with you and co-create a firm path to implementation as part of the project.