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THE PROBLEM
AB InBev’s warehouses in the Dominican Republic were not optimized to handle the rapid growth associated with their new “Marketplace” strategy, which introduced a significantly expanded assortment of SKUs. The increase in SKU volume and shipment activity created challenges in storage, picking, and overall facility utilization. Additionally, the facilities needed to meet global safety standards, manage future demand projections, and ensure next-day delivery capabilities for select SKUs—all within a constrained space and limited capital outlay.
KEY QUESTIONS
- How can AB InBev retrofit its warehouses to accommodate the exponential growth in SKU count driven by the Marketplace initiative?
- What storage and picking concepts will optimize space utilization and labor efficiency while meeting service-level requirements?
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How can the facility redesign phase implementation to minimize operational disruptions?
- What is the best network rollout strategy to scale these upgrades across all key facilities in the Dominican Republic?
THE SOLUTION
Maveneer partnered with AB InBev to design and implement a scalable, phased approach to transform the Bohemia DDC into a high-performing facility capable of meeting projected Marketplace demand.
Retrofit Design Concept: Developed a very narrow aisle storage solution with “less-than-pallet” forward-pick locations to optimize space utilization and reduce warehouse labor requirements.
Phased Implementation Strategy: Proposed a three-phase concept: leveraging hubs to store excess inventory, deploying “less-than-pallet” storage across existing spaces, and scaling the narrow aisle solution network-wide.
Network Rollout Strategy: Focused on Bohemia first, as it drives the largest volume in the Dominican Republic, before applying lessons learned to other facilities.
Operational Enhancements:
- Designed the system to maintain high SKU availability while supporting a peak-to-average day volume ratio.
- Addressed strategic needs such as trailer cube utilization, inventory holding targets, and delivery windows.
Executive Communication: Provided consistent updates and business case justification to align stakeholders across all phases.
KEY RESULTS & INSIGHTS
- Increased Storage Density: Implemented a solution that dramatically increased SKU capacity without requiring additional building expansion.
- Improved Labor Efficiency: Reduced warehouse labor requirements by reconfiguring workflows and adopting automation-friendly designs.
- Scalable Rollout Plan: Established a framework for scaling improvements across the network, enabling AB InBev to adapt to Marketplace SKU growth dynamically.
- Service-Level Improvements: Optimized storage and picking strategies to maintain next-day delivery capabilities, strengthening AB InBev’s service offering.
- Business Case Justification: Delivered a detailed roadmap and financial justification for material handling and automation investments, ensuring long-term
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