Case Study: Performance Improvement Expertise - Warehousing and Distribution

 Challenges we solve:

• High inventory obsolescence
• Managing risk as you transition from asset-based lending to a conventional operating line
• Excessive waste or spoilage
• Rising costs and declining warehouse productivity
• Late deliveries and sub-optimal fill rates
• Ineffective operational design or layout
• Poor customer segmentation and targeting

 Client case studies:

Improving warehouse layout to deliver sustained results

Large distribution facility

Case for Change

Servicing more than 20 different casino and gaming locations, this distributor was struggling with poor fill rates, excessive product obsolescence and a surplus of inventory.

Solution

The project team was able to implement best practices surrounding inventory accuracy, cycle counting, forecasting, order picking, receiving, put away, shipping and replenishment to drive improvements. Moreover, redesigning warehouse layouts and providing training on lean principals added additional value to the organization.

Result

Our advisors were able to achieve a 5-to-1 return on investment within the first year. More importantly, by installing a culture of continuous improvement, the group was able to not only sustain but actually increase results thereafter.

Minimizing risks through inventory reduction

Medium-sized wholesale distribution business

Case for Change

This owner-operator business serving the electrical market was growing extensively and remained profitable. However, finances were being held in inventory, preventing the organization from investing in future growth.

Solution

MNP addressed not only the challenges in inventory but also in the strategy and behaviour behind purchasing. Taking a focused approach, the team designed and installed an operating system with a customized inventory and purchasing tool that would drive consistency in planning and communications.

Result

Working diligently with the organization’s staff, MNP engineered robust process, system and behavioural changes that reduced inventory considerable and enhanced supply chain management while improving warehousing, shipping, and overall quality of service.

Reallocating staff time to reduce costs

Long standing, third-party logistics provider

Case for Change

With more than 50 years handling shipping, warehousing, and distribution for its clients, this organization was facing downward pressure from a primary account to implement cost cutting initiatives. They risked excessively reduced margins or losing the account altogether.

Solution

MNP reviewed and critiqued operations through process observations, interviews and data analysis in order to identify considerable savings for the organization.

Result

By aligning staffing to workload requirements and reducing the frequency of deliveries by increasing utilization during shipping, the team was able to recapture $118,000 annually. In addition, the timing for all cross-docking orders was reduced by 24 hours.

 Current industry trends we’re advising on:

Overlooking or underestimating small details in warehouse management can result in significant issues for an organization. As such, warehousing and distribution companies are held to high standards by customers who expect them to perform reliably and efficiently.

With services that are customized to an organization’s operational and strategic needs, the performance specialists at MNP help reduce costs and improve productivity without sacrificing customer service.