Distribution operations are struggling to stay up with new business models, new channels, and new products, while offering more value-added services. You try to adapt and improve, but it’s difficult to stay current with the thought-leading, global best practices needed to compete. Throughput and storage capacity often become critical issues. Capital for investment in improvements is scarce, and performance starts to deteriorate.
Faced with these challenges, companies recognize the need to change and improve, but are often unsure of how or where to begin. Day-to-day firefighting takes priority, and there’s little time to focus on improvement projects; which leads to a downward spiral that causes more service disruptions. By then, poor distribution performance can impact overall company results. Customer satisfaction, market share, revenue growth, cash flow and operating margins can all suffer.
What is the Solution?
Solving these challenges means quickly assessing the symptoms and uncovering their root cause, whether in process, systems, facility layout, supervisory skills, people or elsewhere. Specialized analytic and modeling software can accelerate the process, but there’s no substitute for experts who can interpret the data and understand the impact. Deep operations management experience is key – someone who understands that solutions must be both pragmatic and implementable.
Ultimately, what’s needed is a roadmap of improvements that have been scoped, vetted, and prioritized. The proposed improvements need buy-in from all stakeholders. And the identified projects need to be quickly implemented to produce a rapid return on investment and improved performance.
Fortna Can Help
Fortna’s approach is to help you quickly identify, evaluate and align a roadmap of improvements that drive performance, business value and deliver rapid ROI.
Gather and align business requirements from all constituents to understand gaps in distribution’s ability to support the company strategy.
Model customer and operational data (order profiles, inventory volumes, SKU velocity, design constraints) to determine the operating requirements.
Conduct extensive on-the-floor observations and reviews to uncover improvement opportunities.
Develop, analyze and prioritize improvement recommendations including understanding their impact on labor, processes, systems and equipment.
Develop a roadmap of initiatives with the supporting financial and metric analysis.
Examples of assessment and improvement projects we have implemented for our clients include: slotting, inventory improvements, labor planning, layout improvements, process modernization, systems enhancements, performance metrics and benchmarking.
Need a fast fix for throughput and capacity constraints
Too much firefighting and exception handling
Unable to meet rapidly changing business needs
Don’t have the time or perspective to make rapid improvements