A Halloween apparel company needed help in implementing cost improvements within their supply chain operations. The company manufactures and ships over 90% of their Halloween costumes in Big Box retail stores. They needed to improve cost and time within their operations from factory to customer delivery. The area that needed the most help was ensuring compliance with OTIF (On Time In Full) orders.
MetaExpert Charlie was brought in to access the situation. He collaborated with the buying department, logistics, IT, 3PL, and warehouse operations to review the current operations. Charlie conducted working visits to the 3PL and warehouse operations to experience the process first hand and interact with floor employees and managers. MetaExpert Charlie created a detailed supply chain management workflow diagram to illustrate the current operations.
The work-flow displayed the areas where current improvements could be implemented, and how each improvement would affect the overall customer service and supply chain process.
- Reduced factory documentation errors from 60+% to under 5%.
- Improved flow of data from factory to customer’s 3PL to provide better visibility of inbound goods.
- Increased the number of locations in the warehouse by 35% with “rightsizing” locations.
- Improved productivity in the warehouse by 27%.
- Dedicated picking area for piece pick goods.
- Providing daily reports to receiving dock of warehouse empty locations.
- Improvement in WMS and rack location labels to provide better details for locations.
- Implementation of Inventory Control processes.
- Cycle counting of locations once empty to verify WMS matches actual location inventory.
- Removal of SLOB (Slow-moving and Obsolete) inventory.
- Improvements to warehouse-to-warehouse transfer process and receiving.
- 18% small package savings by adding customer shipments to warehouse transfer trailers.
- Achieved a 99+% OTIF score avoiding a potential $1.2M in chargebacks.
- Implementation of scorecards for factories, carriers, and 3PLs along with KPIs within warehouse operations.
By enhancing the supply chain mapping, MetaExpert Charlie was able to implement inventory control skills that increased the ROI by 11 times and achieved a 23% OTIF improvement in the first 4 months.