Already using a 3pl, they had a mixture of their own employed personnel and outsourced staff, but wanted a fresh evaluation of their entire on-site logistics operation.
A discreet assessment highlighted waste
Working covertly and under a non disclosure agreement, representatives from Rudolph and Hellmann were able to observe the production logistics operation and identify areas for improvement.
One of the key areas identified was in the manufacturers’ tow train operation, which delivered parts directly to the manufacturing track.
Instant savings and improvements identified
Replacing the manufacturers own employees with 3pl employees would reduce wage costs by 25% immediately, due to different salary scales.
A further efficiency increase of 17% was achieved by streamlining the delivery cycle through analysis of previous activity and synergising routes.
These changes were measured by applying real-time micro KPI’s which also provided the manufacturer with complete transparency on the effectiveness of the operation.
“Process improvement is a continual cycle, once the micro KPI’s are in place all aspects of the process are reviewed for improvement.” Mark Cranidge, Operations Director, Rudolph and Hellmann Automotive Ltd
Additional benefits and improvements were then rolled out
This transformation of the twelve tow trains in the delivery process, enabled other aspects of the operation to be streamlined by reducing manufacturing track holding areas.
This made the delivery cycle ‘slicker’ due to just in time (JIT) supply. In turn, other process enhancements were possible, for instance, minimising trackside stock and demarcation zones further reduced error possibilities.
