Reduced DSO via Better Planning
A desire to continue profitable growth prompted ASL to invite Carpedia to conduct an analysis of the business. The executive of the company “knew there were significant areas for improvement at ASL however there was insufficient time for the leadership team to tackle these very important projects”. The Carpedia analysis confirmed the existence of opportunity for improved cost control and resource utilization. A project plan was developed to improve productivity in the Warehouse and Fleet areas generating an ROI of 1.9 to 1.0.
- Annualized profitability results exceeded the project savings goal by 80%, generating an ROI of 3.3 to 1.
- The project reached a break-even cash flow position one month earlier than planned.
- Warehouse Fulfillment skids per hour increased by 32%, Shipping Receiving skids per hour increased by 25% and Magazine Line bundles per hour increased by 106%.
- City Fleet stops per hour increased by 28% and cost / cwt improved by 28%.
- Delay minutes per driver were reduced by 62%.
- Highway empty miles percentage reduction of 42%.
Specific actions taken to achieve the results included:
- Improved layout and staging of Magazine line skids and bundles.
- Constraint management to improve flow and reduce downtime of the Magazine line. Revised activities of warehouse personnel to reduce waiting time at the skid wrapper.
- Pre-staged work and pre-prepared customer labels to reduce Fulfillment downtime.
- Improved dock door utilization and skid spot designations to reduce double handling of inbound and outbound skids.
- Improved City Fleet unit loading by unit type and geographic area.
- Improved utilization of units between City and Highway fleets to maximize margins.
- Identification and elimination of high empty mileage and low margin Highway runs.
- Improved City Fleet stop and weight density by delivery of previously outsourced orders by ASL units.
The Client Experience:
“To date the changes in the warehouse and fleet are in total exceeding the savings commitment that Carpedia presented. This is the ultimate performance measure and your team has truly delivered the results. The experience of working with Carpedia has been very beneficial and I would recommend your services be considered by any business seeking demonstrated profitability improvement.”
President, ASL Distribution Services