CONSUMER PARTS DISTRIBUTION

Conducts fulfillment worldwide for technicians, wholesalers and customers (B2B and B2C) but wanted to reduce costs and improve service.

Challenge:

• One of the top five challenges on the Chairman's desk
• Takeover from an existing top 10 3PL that allowed the facility to unionize
• Costs were escalating
• Increasing headcount
• Huge inventory shrink problem
• Angry workforce working 7 days/week for previous two years
  

Solution:

• Piloted opening and operating a new smaller regional facility to introduce and validate the TMSi Performance Operating Model
• Awarded the large MDC and, two months prior, we engaged the current workforce to Process Map and conduct Gap Analysis
• Redesigned the Kitting Operation
• Implemented Cycle Counting
• Cross trained entire workforce
• Installed TMSi's team and performance based incentive culture

Results:

• Client has received 2 Quality Awards for the last 2 out of 3 years from their major customers.
• 5-7% cost reduction year over year for the last 3 years.
• Improved service metrics by greater than 70%
  
  

CONSUMER PARTS DISTRIBUTION

The customer's objective was to bring cost in line with market, improve quality and service while increasing productivity.

Challenge:

• Takeover from an existing top 10 3PL that let the facility unionize
• Costs rapidly increasing
• Service and quality were on the downslide
• Current union contract hampered the flexibility and performance of the operation

Solution:

• Manage the transportation/cross dock/consolidation/pooled distribution network with the TMS (transportation management)
• Implemented transportation improvements in the areas of load planning, model selection, carrier selection and zone skipping
• Re-engineered all the processed and established performance metrics
• TMSi programmers handle all enhancements to the current WMS (warehouse management) to support new processes
• Developed and implemented a pick to label system to meet the strict quality requirements of large retailers
• Implemented team based incentives into the Teamster union contract
• Totally restructured the cost of the healthcare plan in the Teamster union contract
• Developed a more representative service metric, which identified other necessary improvements to the supply chain
• Installed labor standards

Results:

• The cost/line shipped in 2005 is less than 2002
• Won the Quality Award
• Saved $1.2 million the first year of contract
• Reduced costs by $1.5 million
• Cut transportation costs by 7%
• Quality levels (measured by end consumer) improved 92%
  

E-FULFILLMENT Services Company

Manufacturer provided e-fulfillment services for one of the premier TV shopping network companies. The customer's objective was to transfer out of a high temporary help model to a balance staffing model, reduce cost, improve service, and increase inventory visibility.

Challenge:

• Customer was in risk of losing their largest contract
• Costs were high
• Service and quality were below acceptable standards for the industry
• Lack of organization, process, and measurement

Solution:

• Converted the high temporary help model to a performance based mix of full-time and temporary culture
• Redesigned the facility and pick methodology
• Established SOPs for every job function and process flow maps
• Conducted 100% physical inventory
• Established quality, service, and performance metrics
• Installed proprietary WMS
  

Results:

• Set the small package shipping record the 1st day of operation
• Costs are down 30%
• Implemented "flex staffing" model to handle large volume fluctuations
• Relocated the business 150 miles away with no interruption in service

HIGH TECH FIRM

Developed a new partnership to enter into the equipment refurbishment and reseller market. The customers' objective was to transfer operations from existing 3PL, reduce costs and cycle time, and improve service.

Challenge:

• Takeover the existing high tech, refurbishment operation from an existing 3PL
• A 60 day time frame to execute
• Hire a complete new workforce and management
• Reduce the long cycle times
  

Solution:

• Implemented a lean manufacturing cell environment
• Redesigned the diagnostic software to reduce cycle time and work steps
• Hire, train and cross train the entire workforce
• Reengineered the process and established SOPs
• Redesigned the facility for more effective storage and product flow
• Uncovered new markets and modified equipment to maximize resale value
• Expanded certification and capabilities to handle multiple product lines
• Developed and tracked CTQ's
• Implemented Six Sigma methodology
  

Results:

• Reduced labor costs by 30% the 1st year
• Reduced time cycle from 53 days to 5 days. (90% improvement)
• Brought in additional product lines
• Took over customer service and help desk
  

$400m LAMINATE MANUFACTURER

Challenge: One plant, 5 RDCs, and a 2-day national customer delivery network. The customer's objective was to lower total operating costs, by 16%. TMSi met their object.

• Cut supply chain costs while maintaining current customer service levels
• Reduce inventory and redeploy in appropriate markets
• Closed a few facilities in an effort to cut costs, but experienced a drastic increase in transportation costs. DC closures added operation complexity by creating difficult delivery windows for major customers.
• Wanted to reconfigure and optimize their existing distribution networks by accounting for all costs this time. All costs to include Inbound Transportation, Fixed Facility Costs, Variable Facility Costs, Inventory Carry Costs and Outboard Transportation.

Solution:

• Developed the optimum distribution network configuration with the right number of DCs, properly sized and in the proper locations with the corresponding inventory deployment strategy.
• Allocated customers to be served by the most cost effective DC
• SKU rationalization and centralization of D inventory items
• Conducted a transportation diagnostic
• Short term - renegotiated rates, built or adjusted multi-stop routes, optimized multi-stop versus LTL
• Long term - Increase visibility and track key metrics
• Implement a core carrier strategy

Results:

• Cut total supply chain costs by 10%
• Delivered a 3 year transportation management strategy to reduce costs by 9%

Printing Manufacturer and Logistics Company

Partnered with BNSF RR to open a transload operation for large paper rolled stock with multiple vendors. The customer's objective was to reduce damage and demerge costs, increase inventory visibility and lower overall costs.

Challenge:

• Automate the high cost, 100% manual operation with no inventory visibility
• The current manual operation forced manual efforts on our client's customers
• The manual operation created delays, inventory inaccuracies and no visibility
  
  

Solution:

• Installed TMSi WMS, which was customized for the large rolled stock operation where the clients' customers could view, edit and release orders online for their inventory only
• Developed new SOPs for each customer
• Redesigned the facility and pick methodology
• Built an interface into SAP for one of the large vendors
• Installed damage tracking process drive by WMS
  

Results:

• Increased customer visibility and improved customer productivity by over 30%
• Customer base has increased from 3 to 17
• Eliminated demurrage charges
• Damage claims are down 99%
• 6% under budget while business activity is up 37%

Printing Manufacturer and Logistics Company

Conducted time sensitive deliveries varying in size from an envelope and packages, to multi-pallet and truckload. TMSi provided logistics and distribution services to both internal customers and 3rd party clients.

Challenge:

• 19 billion pieces of mail requiring day specific and 2-3 range deliveries to the home annually
• 25 US manufacturing locations for the core internal businesses
• 200+ 3rd party clients
• 6 million same day/next day deliveries annually
• 2 million small package deliveries annually
• 180 million package deliveries to 3rd party clients annually
  

Solution:

• Designed 3 tier delivery network with 44 distribution and consolidation facilities varying in sizes for the different types of freight and 10,000 square feet to 670,000 square feet
• Developed and coordinated a carrier base of 150 carriers, which handled 360,000 truckloads annually between the manufacturing sites, distribution and consolidation facilities, and customer deliveries
• Optimized client postal entries to reduce postage and ensure customer specific delivery requirements through 7 consolidation facilities that handled 1.6 billion pounds annually with capacity to stage 50,000 pallets, which turned on average 3 days
• Developed customer service team to support the different internal and external service offerings
• Implemented Six Sigma methodology
  
  

Results:

• Lower transportation costs six of seven years, in succession
• Reduced cost per hundred pounds for handling the consolidation network by 25% over 5 years
• Increased on-time service performance from mid-80's to above 96% in USPS network
• Above 98% on-time delivery in expedited delivery network