Case
Study A
Increase utilization of existing packaging specialties
and distribution operation.
Products: OEM and after market automotive parts
Customer: Major Multi-Divisional Parts Manufacturer
Background: One
division of this large corporation was experiencing significant
order turn failures and increasing cost issues, while
being pushed to provide shorter lead times and reduced costs for
major domestic retail and distributor customers. Products were being
manufactured, packaged, and inventoried by each customer’ brand
and distributed from the manufacturing warehouse location.
Solution: Relocate the 1,900 sku product line to a CWC distribution
logistics facility, maintain inventory of fast growing product
line, and private label lines. Provide packaging specialties from
bulk stock to finished goods in a JIT environment to meet line
service levels of 99%. Continuously provide order turn of 100%
to clients within a 48 hour window.
CWC adjusted the existing warehouse layout, consolidated products
within the existing operation, increased the use of rack and bins,
hired and trained an additional 45 team members, planned for and
then received 58 truckloads of products in 7 days, including the
July 4th holiday weekend. Shut order processing down in one location
and started up order processing in the CWC facility the following
morning with no interruption to customers.
Payoff: The clients
inventory has been reduced 20 %, per order costs have been reduced
in excess of 25% and the shipping delivery window
has been reduced by 4 days. The client said, “thank you for
making this high profile move a non event for our customers.” The
project was so successful in 2004 that additional items are being
incorporated in late winter of 2005.
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