Meeting the Challenge
Building a High-Performance Operation with LogistiPoint’s Performance Management
This consumer products distributor and merchandiser for Wal-Mart and Sam’s Clubs needed to overcome operational challenges, reduce variable and fixed costs, and improve customer service for a new WMS and DC expansion.
When Wal-Mart demands better service, companies generally do whatever it takes to provide it. Our client was struggling with a new supply chain software suite they had hoped would significantly enhance their ability to serve at lower cost. However, this and other technological investments were not returning on investment and concerns about the level of service created a perfect storm of issues that threatened its well being.
LogistiPoint developed and implemented a strategy that included a network-wide Performance Management Program, client team training and expansion planning. Cutting through corporate silos, we tapped the intelligence of different senior executives and other stakeholders. That provided us broad-ranging perspective, which made our implementation more effective.
Our actions included:
After the first 6 weeks, operating costs began to drop. The entire program earned back its investment and began generating cash in week 14. In addition, associates were energized and appreciative of the opportunity to be more effective in their jobs and to be objectively and financially recognized for doing so. Managers now have new tools and use them daily.
Other highlights included:
This rollout has been so successful that the company’s management team has created a culture team from other functions to explore how to expand Performance Management concepts throughout the organization.