Realization Logistics Improvement Program

Well-known manufacturer of sportswear and shoes outsources a large part of its European distribution to a global operating logistic service provider for the first time.

The logistic service provider (3PL) uses a new branch, not specifically built for this customer, to accommodate this Fashion client. During the peak season after start-up, it appears that:

  1. Well-known manufacturer of sportswear and shoes outsources a large part of its European distribution to a global operating logistic service provider for the first time.

  2. The logistic service provider (3PL) uses a new branch, not specifically built for this customer, to accommodate this Fashion client. During the peak season after start-up, it appears that:

Objective / Assignment

  1. Structuring, prioritizing and completing improvement initiatives into a complete improvement program.
  2. Pragmatic management on the program and the guiding, advising and coaching of all stakeholders involved to realize the improvement program.
  3. Visibly contributing to the improvement of the operational performance including the financial results in the current financial year (> 10% cost reduction).
  4. Optimizing the processes and the control so that the outgoing volume can increase significantly (> 60% volume increase).

Approach / Focus

  1. Gaining confidence from all shareholders.
  2. Quick scan processes and identification improvement.
  3. Collecting, discussing and assessing improvement.
  4. Quantify and prioritize improvement through 1 overall improvement program.
  5. Resourcing and Stakeholder management (ownership program at branch location)
  6. Making progress on improvement program. (And show it to all stakeholders)
    • Processes (Layout, Flow, Lean, mechanization)
    • Control (Management, training, planning, system design and tooling)
    • Organization (Structure, shifts, responsibilities, tasks)
    • Information (Training manuals, process descriptions, control information, KPIs, benchmark)
  7. Program management and a weekly transparent progress report on the program to all stakeholders.
  8. Show improvements on contribution to total objectives
    • Higher throughput (peak processing numbers) and overall customer satisfaction with performance.
    • Lower costs, resulting in a positive financial operating result.

Success factors

Experience and seniority of the Interim Manager. Transparent evidence-based structured approach while respectfully involving all stakeholders. And ownership of both the program and the results were placed with local management. Transparent factual reports of the progress on a weekly basis and the short term realization of improvements that directly contribute to an improved output and margin improvement of the 3PL.

Results achieved