Company Profile:
Single Division of Multi-Billion Dollar Food Distributor
Distribution Profile:
No inventory locator system; no strong process controls; no quality feedback loop in place; DC was rated lowest among all US DC’s for customer service, two major customers gave notice to sever the relationship; Regional management had assessed that local managers needed to be replaced.
Transportation Profile:
Drivers paid hourly
Solutions:
Implement an inventory locator system and all associated inventory processes
Develop and implement quality tracking and feedback loops
Create all new customer service metrics and organizational structure
Customer service changed to single point of contact
Implement activity based pay for drivers
Only the General Manager needed to be replaced
Develop and implement quality tracking and feedback loops
Create all new customer service metrics and organizational structure
Customer service changed to single point of contact
Implement activity based pay for drivers
Only the General Manager needed to be replaced
Results:
Inventory and order accuracy increased significantly; shrink reduced
Drivers and equipment reduced
Within 6 months, neither of the two customers had severed their relationship. Instead both recognized this DC as one of the top DC’s in customer service
Expenses reduced by 12% of total spend in spite of increased volume
Drivers and equipment reduced
Within 6 months, neither of the two customers had severed their relationship. Instead both recognized this DC as one of the top DC’s in customer service
Expenses reduced by 12% of total spend in spite of increased volume
