Consumer Products & Health Care Distribution Center

A Retail Distribution Center’s Adoption of OpEx Results in a 28% Productivity Increase in Four Months

Situation

A publicly-traded online retailer of health and beauty products needed to increase the productivity of their 400-plus distribution center employees while improving customer service and quality. MetaOps’ MetaExpert™ delivered a team-based training and mentoring solution focused on reducing error rates and costs per order, and improving process efficiency so the distributor center could markedly improve profitability.

Actions

The company credits the MetaExpert™ with helping her team to overcome their productivity challenges while also improving the quality of customer service. This was achieved by the MetaExperts™, who:

  • Led the development of a site ‘steering committee’ of key stakeholders.
  • Trained the team to drive improvement efforts using best practice Distribution Center OpEx methods.
  • Developed and implemented a customized approach to engage the workforce in ‘quick-win’ Kaizen/Process Improvement workshops using a ‘learn-by-doing’ approach.
  • Mentored these teams to implement rapid improvements in 12 key areas over a 5-month period of time.

Results

The distribution center team’s transformation through MetaExpert-led OpEx ‘quick-hit’ innovations resulted in reduced errors, a decrease of processing cost per order, and a dramatic increase in productivity and quality of service. The division realized success rates of:

  • 28% Increase in profitability per order – amounting to more than $4 million per year to the bottom line.
  • 30% Improvement in order accuracy.
  • 50% Increase in speed of order fulfillment.

Return on Investment

  • More than $4,000,000 per year in reduced costs.
  • Quality in order accuracy and in-full of 30%.
  • On-time delivery to promised ship date increased 50%

Project Details

Client Skills Required: OpEx understanding and deployment, Lean Distribution Skills, Agility in incorporating quick fixes, Kaizen, Lean Six Sigma, continuous process improvement, Leadership for developing and sustaining High-Performing Teams.

Contract Length: 120 days

Support by MetaOps, Inc. MetaExperts™: OpEx, Kaizen, and continuous improvement training, mentoring, coaching and implementation, and High-Performing Teams development.

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