Expand Current DC:

Space Utilization:

Evaluate the current DC's layout and storage systems for both Pick & Pack and High Cube SKUs.

Implement space optimization strategies tailored to the characteristics of each SKU category.

Workforce Optimization:

Assess workforce capacity and skills required for expanded operations in both Pick & Pack and High Cube areas.

Consider training programs or hiring strategies specific to the handling requirements of each SKU category.

Technology Integration:

Invest in technology solutions for both Pick & Pack and High Cube operations to maximize efficiency.

Explore automation options that cater to the distinct needs of each SKU category. Exhibit 3 SKU SEGMENTATION Year Round # SKU % SKU % Cube % Cost Pick & Pack 11,634 59 13 31 High Cube 2692 14 35 58 Yard 266 1 29 8 Direct 5203 26 0 26 Total 19,795 100 100 100 Seasonal # SKU % SKU % Cube % Cost Pick & Pack 1035 61 9 25 High Cube 323 19 49 45 Yard 63 4 42 15 Direct 270 16 0 19 Total 1691 100 100 100 Highly Seasonal # SKU % SKU % Cube %Cost Pick & Pack 474 34 2 11 High Cube 483 34 29 51 Yard 42 3 79 19 Direct 410 29 0 19 Total 1409 100 100 100 Total # SKU % SKU % Cube % Cost Pick & Pack 13,143 57 8 26 High Cube 3498 15 45 39 Yard 371 2 47 11 Direct 5883 26 0 24 Total 22,895 100 100 100 EXPLAIN THE OPTIONS OF EXPANSION OF CURRENT DC WHILE CONSIDERING NUMBERS GIVEN IN EXIBIT - 3.