Supply Chain Brain - March/April 2012

Retailer Sees 100x ROI in One Year—Enjoys
Company-Wide Improvements

Challenge: Our client wanted to improve the forecasting and delivery of sales support materials to their various customer-direct distribution and retail locations.

Solution: We undertook a system-wide assessment and benchmarking project to compare their processes against industry-leading practices, and to help them identify strengths, weaknesses and opportunities. We were asked to return to help them develop and implement a centralized HQ function to forecast needs and control distribution across their various regional centers, and to coach new team members in their roles. Later, they asked us to return again to help shift business from four regional providers to a single national provider, and develop processes and performance measures that would be jointly implemented between the client and the provider to maximize the impact of their efforts.

Results: First-year savings from the changes implemented exceeded $30M—a 100x Return on Investment on their consulting spend for all three projects.

Re-Vamp: Automotive 3PL Turns Losses to Profit
in 9 Months

Challenge: Our 3PL client experienced challenges handling a service parts returns operation that was added to their scope of services for a major automotive OEM. Site managers, experienced in repair and refurbishment processes but not in distribution processes, had set up the facility and operations with little advance notice. The operation was losing approximately $100K per month.

Solution: Our firm was engaged to assess and re-engineer the facility and operations. Our analysis revealed the cost overruns resulted from poor facility layout; lack of slotting methodology; lack of system driven processes; and, no documented processes.

Results: The assessment and a 9-month period of re-engineering and change management resulted in: Reconfigured racking and implemented slotting methods—storage capacity increased 40%; Systems changes and process improvements—labor cost per unit decreased 32%; Productivity Improvements—Daily through-put increased by 38%. The account P&L went from losing $1.2 million to a favorable $200K the next year.

Home Improvement Company Saves $100M+
with New Multi-Channel Distribution Program

Challenge: Our Team first worked onsite with a Fortune 50 Home Improvement company. The Program team decided to convert Import (IDC) and Carton (CDC) Distribution Centers into combined Rapid and Stocking (RDC and SDC’s) Distribution Centers converting 10 DC’s over the course of 6 months.

Solution: Rollout of further RDC’s included pointed information on space analysis, material handling layout, staffing analysis, space impact, training material, communication templates, reporting requirements, critical path task list.

Results: The Multi-Channel Distribution Program that our team and our client developed and executed resulted in a greater than $100M in annual savings. The Program savings breakdown from tactical savings was as follows ($20 M): $5MM from Market Realignment (Transportation), $10MM from combined domestic and import market service ( Transportation), $5MM in fixed costs for closing 4 DC’s within the year, $50–90MM in recovered Vendor Direct Compliance charges which now was serviced through the MDC agile capability Business Impact.

About the Solution Provider: Supply Chain Visions is a specialized consulting firm dedicated to assisting companies with supply chain strategy development, implementation and education. Our expert advice and collaborative approach help clients develop solutions that are strategic as well as practical, cost effective and focused on driving measurable improvements.

Web: www.scvisions.com Email: Info@SCVisions.com Phone: 206-414-8378

About the Solution Provider: Triad Logistics Partners is a boutique general supply chain services consultancy. Our resumes include a combination of practical and consulting experience that provides a comprehensive “been-there/done-that” understanding of our clients’ viewpoints and experiences. Our strategic and operations advisory services are based on years of experience in world-class supply chain organizations.

Web: www.Team3PL.Com or www.TriadLogistics.Com Email: Info@TriadLogistics.Com Phone: 214-358-7234

About the Solution Provider: GlobalReact is a twenty five ( 25) year old supply chain consulting and systems company comprised of multiple entities who provide management advisory, software, support, project management, business intelligence and business continuity planning. We have worked for twenty six percent of the Fortune 500 and forty four of the Retail Hot 100.