JLL solves storage challenges for global apparel brand

In 2019, one of JLL’s consumer goods clients commissioned a study of their warehousing and storage utilization at their world headquarters campus, with the long-term goal of creating a holistic storage strategy to better support their business needs. At the time, the company faced the daunting task of relocating nine buildings full of people and product into one newly constructed facility. The client turned to JLL’s Storage + Organization (S+O) team to ensure that any disarray in warehousing and storage from the old buildings didn’t carry over to the new one.

The S+O team within Project and Development Services (PDS) applies Lean principles to make the handling and storage of products more space- and time-efficient. Lean is a management approach designed to help companies improve the way they do business by eliminating waste and optimizing workflow.

Setting the pace

For this client, S+O executed the project in two phases: Project and Sustaining Service. The Project phase involved removing items no longer needed or used by the client and managing the preparation, containerization and post-move “settling in” to the client’s new product storage spaces. To inform their Project approach, S+O used the results of the warehousing and storage study, which identified nine core themes to be addressed:

1. High volume of product samples
2. Excessive non-essential material
3. Inventory tracking
4. Security risks and liability
5. Decentralized storage
6. Lack of processing space
7. Spaces do not align with function
8. Hesitation to use offsite warehousing for storage
9. Co-location to optimize operations

Through this framework, S+O identified three deficiencies in the workflow design of the client’s storage rooms:

• No boundaries between processing areas
• Overflow packages landing on personal workspaces 
• No place to collect ingoing or outgoing packages

To address these problems, the team recommended clearly defining individual processing areas, creating a shared work area for collaboration and separating inbound and outgoing package collection areas from processing spaces.

S+O also formulated a strategy for optimizing the available space in the new building by streamlining liquidation of outdated products, defining space usage and standards, and adjusting racking equipment, among other initiatives.

Keeping the pace

Once the recommendations and processes of the Project phase were implemented successfully, the S+O team moved on to the Sustaining Service phase. This involved working with the client on an ongoing basis to help them maintain the progress that had been achieved and to continually improve processes for optimal product flow.

“We knew that sorting and setting items in order was only part of the battle,” said Leslie McIntyre, Storage + Organization Program Director at JLL. “We needed to continue defining processes and systems by putting standards in place. If we don't have those, then the client’s challenges will resurface and things will go back to the way they were before we were involved.”

McIntyre and her colleagues are spearheading organizational consultation services and product liquidation sessions that provide product liquidation, put-away support, organizing flow and assisting as-needed with other Project initiatives. Meanwhile, S+O has gradually cascaded the procedures and standards throughout the building, growing the team as necessary to meet the client’s evolving needs and keep product flowing.

The results were a home run

As a result of their work in the Project phase, the client was able to emplace all of their materials into the building appropriately.

“The client’s original analysis indicated there would not be enough space to hold all the product coming from the legacy buildings,” said McIntyre. “However, once we consolidated all of the teams and materials into the buildings in accordance with our recommendations, the client actually found that there was plenty of space to spare.”

In addition, the initiatives implemented by S+O led to an 80% increase in processing efficiency and a 30% reduction in the amount of storage space required.

S+O’s flexibility and deep knowledge of the client’s existing setup and anticipated needs has also enabled them to serve as a bridge between the client and other PDS services like Portfolio Strategy, Occupancy Planning, Relocation Project Management, and Warehouse Management.

“There are times when the client doesn’t know how to get to the next step of something they need,” explained McIntyre. “Although the labor piece may not be in our scope of work, we know exactly who to direct the client to.”

What’s next?

S+O is working to expand their services to additional buildings in the client’s portfolio, as well as bringing on additional clients.

In addition, the S+O team plans to introduce a third service, Workflow Design, which would leverage their specialized Lean expertise to design and integrate people workflows in environments to eliminate waste.