International Electronics Retailer’s Distribution & Repair Centers Increases Labor Productivity in Their Supply Chain by 15%

Situation

A Fort Worth, Texas-based multi-billion retailer’s distribution and repair operations needed to do something fast to improve their bottom line results. They selected MetaOps, Inc. to provide a team of 4 MetaExperts™ to help them with the introduction and adoption of Lean Six Sigma methods throughout the supply chain. The MetaExperts™ assigned lead the organization to improving productivity by 15%, affecting more than 2,000 employees in more than 20 sites across the U.S. resulting in several million dollars in bottom line impact.

Actions

The company’s SVP of Supply Chain credited MetaExpert-lead Operational Excellence transformation with:

  • Leading the development of a site ‘steering committee’ of key stakeholders at all locations.
  • Training teams to drive improvement efforts using Operational Excellence methods.
  • Developing and implementing a customized approach to engage the workforce in ‘quick-hit’ Kaizen workshops using a ‘learn-by-doing’ approach.
  • Lead teams to implement rapid improvements over 12 key areas over a 5-month period of time.

Results

The company’s transformation reduced their costs by millions and:

  • Productivity increased 15% across the supply chain
  • Error rates on orders were reduced 30%
  • Order delay times were reduced by 50%

Return on Investment

  • More than $6,000,000 in recurring savings – cost per transaction
  • 15% overall productivity increase affecting 2,000 employees
  • 28% reduction in labor costs in pick operations
  • 30% reduction in errors reported
  • 50% reduction in order delays

Project Details

Client Skills Required: Lean Six Sigma and OpEx understanding and deployment, SOP (standard operating procedures) improvement, continued process improvement, leadership and training in the practice of High-Performing Teams

Contract Length: 180 days

Support by MetaOps, Inc. MetaExperts: LSS and OpEx training, mentoring, coaching and implementation, and High-Performing Teams development, Kaizen workshops, Quick Hit change innovation and implementation

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