less resources ....
Problem: Complexity, inefficiency and high cost were the issues for the largest snack food company in the US. By utilizing a multitude of methods to distribute and deliver their product to market, they created an excessive cost base and had a system that was hard to manage. This was driven by using many different types of assets; multiple order processing methods and systems; overlap in certain geographies and a multitude of different people skill sets and reward systems necessary to execute and support the work.
Solution: The executive team decided that the proposed solution needed to incorporate design principles. They were greater flexibility system wide; better asset utilization; simplified and efficient processes; lower cost and capacity for growth. To address these challenges the start point was a complete review of the operation using process flow and analysis techniques. Using this information as a foundation, the next step was to utilize creative problem solving techniques coupled with industry best practice knowledge to envision what could be the ideal design going forward.
This work produced a completely redesigned distribution network using lean methods, redesigned work flow, standardized equipment and a new simplified organization structure with rewards based on industry best practices.
Results: The solution delivered in excess of $20 million in savings. The redesigned distribution network also met all the design requirements by utilizing fewer assets, lean processes, less resources along with the capacity to handle regular as well as peak volume.
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