Warehouse Management System Implementation for Lennox

Lennox International Inc. is a provider of climate control products for the residential and commercial HVAC markets. The company is headquartered outside of Dallas, Texas, but has distribution centers across the United States and Canada and additional production capacity in Iowa. For a manufacturer and distributor that maintains a large network and global operations, mastering essential supply chain functions such as warehousing and tracking metrics are keys to maintaining worldwide success.

The Challenge/Opportunity

The challenges were multifaceted — a need for streamlined operations, improved efficiency and advanced warehouse management.

Initially, our engineers performed a three-week supply chain distribution assessment; looking at the people, process, methodology, timing, and design.

“We developed a list of recommendations to meet the challenge of lowering risk and improving success in all these areas.”

The Solution

The output of this analysis resulted in our team at Scott Sheldon being asked to continue on and oversee the warehouse management system (WMS) portion of the implementation, starting with Lennox’s Atlanta, Georgia, regional distribution center. The Atlanta distribution center was successfully launched and we then moved into Global Design to validate processes before moving to the next site. We have since brought in additional subject matter experts to both supplement internal resources and help provide implementation knowledge transfer to the rest of the operations and IT team members.

The Results

The implementation of the WMS modules showed promising results. A significant reduction in RDC (Regional Distribution Center) labor costs was observed, even as network volumes continued to increase. The initial data indicated a trend towards a reduction in overall labor costs per order due to the internal efficiency improvements brought about by the WMS.

The successful launch of the Atlanta distribution center marked the beginning of an ongoing partnership with Lennox. This case study is not just a testament to the successful execution of supply chain solutions but also a reflection of how a forward-thinking approach can position a company as an industry leader capable of meeting the ever-changing demands of the HVAC equipment industry.

Reduced RDC Labor Costs

Reduced Overall Cost Per Order

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