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Our customer was experiencing several issues in their supply chain from conflicting pick-and-pack procedures, increased costs due to overreliance on short-distance LTL freight shipments, and an alarming amount of shipping errors (mislabeling, wrong counts) leading to more costs for the customer.
The MetaExpert worked full-time the first 6 weeks and accomplished several process improvements utilizing value stream mapping and cross-functional waste-walks:
After deploying several waste-cutting measures the MetaExpert and the customer saw resounding success from transitioning nearby supplier shipments and inter-warehouse traffic to smaller trucks. This reduced LTL costs, eliminated scheduling and shipping errors by transitioning from manual label data entry to label barcode scanning. The result was reduced past-due costs, quantifying process flows that could be reduced, quantity errors, mis-shipments and past-due orders.
The MetaExperts initial contract was 6 weeks and due to surpassing goals, the contract was extended to 6 months.
The next improvement phase included cross-team OpEx mentoring and consultation which led to an additional $1.6 million in defined cost savings.
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