Netflix Stock and Delivery

Since we were learning about how to design a warehouse and what are the pros and cons of having more automated process I have looked for a very optimized warehouse and delivery system without automation. I found Netflix! This is the proof that not always to automate is better than manual process in order to deliver really fast.

In 2009, Netflix delivered movies to its customer’s mailbox within 1 business day. One of the main reasons of this deliver capacity was the employees ability for stoking movies. They could stock between 600 to 950 movies/hour, depending on how skilled the employee was. (see minute 0:24 of the video). They had a very standardised process regarding the storing part. In this aspect, employees needed to rest and perform several exercises intended for relax the muscles (see minute 1:11 of the video).

Blog netflix2

The other reason of Netflix success in the delivery aspect was that its stock was always in rotation, Netflix warehouse was almost empty. The rest of the DVD’s were in processing, in customer’s homes or in transit (see minute 2:07).

Video: https://www.youtube.com/watch?v=CWA0LKfEv3c&feature=related

 

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