Improving Warehouse Operations, Fleet Performance, and Invoicing Cycle Time
After nearly a decade since ASL’s first successful engagement, Carpedia was invited to conduct an analysis at ASL’s facilities to assess opportunities in warehousing, fleet utilization, customer service and invoicing cycle time.
ASL’s warehousing operation is complex due to the high number and types of customers they service; Customer specific cost reporting was unavailable, Excessive travel was evident among high volume SKUs due to existing layouts and organization, Detailed analysis revealed gaps in work standards.
Continual competitive pressures and a challenging economy had put increased emphasis on fleet performance. Detailed analysis of the various operating zones and their respective run rate models showed areas for improvement and key levers for performance.
Customer Service and Cycle Time
Cash tied up in the invoicing and A/R cycle is unproductive cash. Although not significantly out of line, ASL saw an opportunity to free up poorly utilized working capital. Customer Service staff utilization was also assessed to ensure alignment to varying workload volumes. Carpedia and ASL engaged in a program to analyze and develop improvements to processes, management systems, and behaviors throughout the organization.
Process, System, and Behavioral changes were implemented throughout the organization. The results were as follows:
- Cases / hour improved by 33.6% over the base period
- Fulfillment lines picked / hour improved by 30.9% at the Warehouse #1
- Fulfillment lines picked / hour improved by 45.0% at the Warehouse #2
- Magazine bundles handled / hour improved by 30.6%
- Dock skids handled / hour improved by 22.3%
The following fleet margin improvements have been realized over the base period:
- Highway fleet improved 28.6%
- U.S. fleet improved 59.7%
- Canadian City fleet improved 10.2%
Customer Service / Invoicing
- Customer Service costs were reduced by 12.9% over the base period
- TTL DSO analysis is yielding a $1.02M working capital improvement
Additional Organization Improvements
- Operating Reports were created with a balanced set of performance indicators
- Leaders and staff were trained to identify performance barriers to help guide future continuous improvement initiatives
- ASL’s ability and willingness to institute numerous organizational changes has allowed them to become a more results oriented entity capable of making ongoing improvements.
The Client Experience:
“In my opinion we are a better run business as a result of our two projects with your organization. I have found the projects to be a great education towards improving and running a better business.”
President, ASL Distribution Services Ltd.