Case Study: Hanes Brands

DC Performance Optimization with Precision Operations Solution

Significant impact within 90 days

Challenge

Iconic brands, like Hanes, have survived by continually improving the customer experience and efficiency of their operations.

With the growth of the Champion brand and a resurgence in their inner wear brands, Hanes realized that their 10 distribution centers in the United States had not evolved with the business and service levels and costs were not moving in the right direction. Too often, organizations are overwhelmed with just maintaining the status quo, and the thought of significant assessment and associated change is daunting.

Hanes engaged the Brecham Group to analyze and assess each distribution center and develop a prioritized plan of action to achieve desired performance level.  Specific warning signs:

• The flow of inventory from the VAS area was a bottleneck.
• Staff performance and deployment was inconsistent – and under performance was a growing concern.
• Efficiency drops in fulfillment, slotting and re-work

Solution

The Brecham Group initially deployed its Precision Assessment Evaluation to score each of the DC’s – and as an entire system. The output included a DC-specific solution set that considered a phased implementation and emphasized efforts that could deliver speed to value. Example of a DC-specific workstream:

• Staff Deployment: Rationalized positions and enhanced staff scheduling strategy.
• Labor Standards: Implemented task definition, performance expectations and individual reporting.
• VAS Process Improvement: Designed better layout and inventory flow to/from VAS area.
• Slotting Strategy: Designed inventory positions to effectively fulfill orders.
• Wave Management Strategy: How work is planned & managed thru the operation to increase utilization and reduce exception processing
• Batch Work: Converted some operations to a ‘batch’ process to maximize VAS runs and minimize pick labor

Final Results

Implementation

As with any solution, all work was governed by the Brecham Group Success Model which includes that assignment of a Precision Supply Chain Operations team led by a Managing Director.

The initial assessment which included onsite walk-through’s, staff interviews, system data analysis, and precision workshops were all completed within first 60 days.

Impactful changes started to be activated within 30 days of the prioritized plan – and all optimizations completed within 90 days.

“Trying to keep up with replenishment and order filling was always difficult. We always had to sort through to find the right work and our associates were constantly frustrated. Those problems went away once we implement the new workflow.”

–Operations Supervisor
Hanes Brand