Paint manufacturer SME

Logistics optimization

Paint manufacturer SME

« Logistics optimization »

  • Initial Status

    • Clients: broad customer base but just a few of them contribute largely to the turnover. However, the same level of service is provided to all.
    • Products: large number of references in stock, a lot of which have a low turnover. Systematic differentiation of products causes storage problems.
    • Storage: several storage sites with each having its own logic and organization.
    • Logistic flows: many people involved in the flow of orders and many different logistic flows, reducing the efficiency of the system.
    • Balance between work load and capacity: the workload fluctuates during the day, the week and the year. The resources are not always well-adapted (flexibility).
    • Transportation: there are many orders of small size and the delivery costs are not billed.
  • Project objectives

    • Increasing the staff's efficiency by 10% (flow of orders).
    • Reducing storage and transportation costs.
    • Improving customer satisfaction.
    • Better defining and clarifying the service offer.
    • Rationalizing the range of products.
    • Finding the most appropriate steering tools for the company (KPI).

    The financial impact is estimated at 250k€ per year.

  • Actions taken

    Implementation of 5 workstreams to achieve the project objectives

    A - « Services and goods offer » workstream: defining and settling the services offer, analyzing and rationalizing the range of products, identifying the costly clients' behaviors and disposing of them.

    B - « Order entry and preparation » workstream: organizing the order entry and optimizing the computerization of the purchase order, as well as the workload/work capacity balance .

    C - « Goods storage and delayed differentiation » workstream: analyzing the packaging and the feasibility of a delayed differentiation (« slow movers »).

    D - « Delivery and transportation » workstream: conducting a comparative study on insourcing or outsourcing transportation, improving the rounds, defining the organization rules of the rounds.

    E - « Dashboard and steering tools » workstream: defining and setting up an operational dashboard for every site, as well as a control framework, defining the KPIs.

Gains obtenus

Quantitative gains

  • Reduction of 140 k€ in the value of the stock.

Qualitative gains

  • Rationalizing the "negotiation" range: dashboard.
  • Order entry and preparation: defining and settlliing a new modus operandi + training (2 sites).
  • Efficiency of order preparation: implementing the "optimal preparation process" method (+128%).
  • Delayed differentiation in production line: - 1/3 of the articles, defining the storage rules.
  • Transportation logistics: improvement of the system of the rounds + PDCA.
  • Defining and settling the service offer of logistics.
  • Process of monitoring the non-compliance.