Sales & Operations Process Improvement
Streamlining Shipping/Transportation

March 2010
In This Issue
What Would You Like to See?
What is Mitch Doing?
Lean in Transportation/Shipping
Greetings!
 
This month we will present how a distributor used their Performance Scorecard to drive significant reductions in cost and improvements in Customer Service.  While their operations are somewhat unique, this case-study says a lot of how a well designed Performance Measurement System can drive performance improvements. 
 
Sincerely,
 

Mitch Millstein & Ray Davis
 What Would You Like to See in Future Newsletters?

We have implemented Performance Scorecards, Lean and Six Sigma in numerous industries (healthcare, distribution, financial services, retail and manufacturing) and areas of business (sales, operations, administration, scheduling, product development, supply chain, etc.) and can present information on any of them.  Let us know!
Mitch 5S-ing
Mitch on 5S project
What is Mitch Doing
Mitch is implementing 5S Visual Management in the Service/Repair Department of a equipment distributor. 

Service/Repair Techs do not like to throw things away! 
 
 Lean & Six Sigma in Distribution/Warehousing


LEAN SIX SIGMA TOOLS

Performance Scorecard

5S Visual Management


DETAILS

1) This project was totally driven by the Scorecard.  Once the team created its Bulk Delivery Department Scorecard, they quickly realized what had to be done to improve performance.  We came up with a saying that "the data will lead the way". 

http://www.supplyvelocity.com/files/March_2010_Delivery_Lean.ppt

2) This company had two delivery functions.  One was for packaged product and the other for bulk-liquid delivery.  We focused on the bulk-delivery business. 

3) The measures pointed to the need to reduce deliveries by improving the remote monitoring of the bulk liquid tanks, or increasing the size of the tanks. 

4) By remotely monitoring the tanks of its customers, this company both does a great service for its customers; knowing when a delivery should be scheduled before it becomes an emergency. 

5) By increasing the size of the bulk-tanks at its customers' sites it can reduce delivery frequency to a target of 1 time per month.  (See slide "Delivery Data")

6) In addition, because this was a Lean project, and 5S is the foundation for Lean, we 5S-ed the dispatch offices.  This company took on 5S in a big way, and is systematically 5S-ing all of its offices, operational and storage areas. 

 

RESULTS

You can see that this company expects to reduce the number of deliveries it makes by 185 per year.  This translates into reduced delivery expense with better customer service.