Logistics: Late Deliveries

Logistics: Late Deliveries

Client:
A large logistics firm was sporadically missing deliveries to a large customer. In addition to hundreds of thousands of dollars in penalties, the firm was concerned that the contract would not be renewed based on the delivery failure rate.

Goal:
eMRI trained and coached a Lean Six Sigma Belt through the project from start to completion. Simple data analysis showed that 80% of delivery issues were coming from a single pick line. Further analysis showed root causes were uneven replenishment and an unbalanced workload among pickers.

Results:
Revamping the replenishment process and balancing the workload among pickers resulted in the elimination of late deliveries for the past 4 months. Long-term process assessment is currently being undertaken.

Savings:
Savings of over $275,000 in annual contractual penalties, plus improved probability of customer retention.