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
|
Brecham Group Point-of-View Supply chain organization need to measure the “right” performance metrics AND benchmark against industry standards. For each distribution center, need to know “what good looks like”. |
Solution
The Brecham Group initially deployed its Precision Assessment Evaluation to score each of the 10 DC’s – and as an entire system. The output included a DC-specific workstream 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.
| Brecham Group Point-of-View Supply chain organization need to proactively have a labor strategy – and be active in establishing accountability and a performance culture.”. |
““It was impressive how quickly the Brecham Group was able to understand and impact our operations. The speed and quality of their work is nothing like I have ever seen” ”
–Tim Schmo Hanes Brand