The Midlothian, TX branch of Martin Marietta Materials (formerly TXI, Texas Industries) was faced with the task of relocating all inventory items to a new warehouse located on site. This task included both a physical and administrative transfer of more than 11,000 item numbers, which does not represent the total number of items physically moved since each item number had an associated quantity.

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The biggest issues that the warehouse team faced during this project were posed by the overwhelming lack of organization and neglect that top-to-bottom management had allowed over the past several decades, as well as an aging and largely convoluted inventory management system that was a result of the TXI acquisition by Martin Marietta.

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Many inventory items were mislabeled, misplaced, stored in the wrong location, obsolete, unidentifiable, out of stock or some combination of the above. These issues also presented the risk of not having key parts available in the event of a kiln outage, which would cost the plant a minimum of $10,500 in lost revenue. Because inventory affects both the balance sheet and income statement, ensuring that inventory counts are accurate is extremely important. This level of accuracy was not achievable through the current inventory management system and has resulted in the decision to move forward with this $2,000,000 Warehouse Relocation project.

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A resolution to these issues was deemed a priority by current management and the task of finding a solution was issued to the warehouse staff. Click here to lean more about how the warehouse team developed a solution and plan for the warehouse relocation project.