Our expertise | Performance in logistics
The ability of any industrial company or retailer to achieve its customer service commitment lies for most part into its aptitude to perform when running its logistics.
The level of performance significantly depends on three factors:
- The quality of information being processed (reliability and freshness)
- The efficiency of operational processes implemented
- And the ability of logistics tools in place to deal with a high level of variability
Traditionally, logistics performance is measured along 3 dimensions: Cost – Quality – Lead Time.
For instance, the sharp changes in consumer behavior that are currently occurring tend to irremediably bring logistics organizations toward the omni-channel distribution model.
In this model, the three dimensions used to assess performance are of particular importance :
- The cost: measured by piece or by order, it varies significantly depending on whether the product is delivered in B2B or in B2C. Good cost control in B2C is critical when the shipping cost is charged to customer and becomes a key factor in the purchasing decision, driven by comparison shopping websites;
- The quality: if the price positioning and the extent of the product offer permit to catch new customers, the quality of logistics is certainly a mean to securing their loyalty. Logistics has to get the last 0/00 in quality. It must be able to provide the same level of excellence day after day, in spite of spikes in volume resulting from special sales or the holiday period, when the staff is mostly made of temporary employees;
- The lead time: under pressure from worldwide leading retailers, short delivery times (often free of charge), as well as zero defects deliveries, will soon become the norm. As a result, lead time is the factor in the service offer that really makes the difference. It tends to become shorter, resulting in a later daily cut-off time for distribution centers.
Examples of tasks
Design of a new e-commerce B2C fulfillment center (e-commerce)
In a situation of steep growth and the evolution of its business model, one of the leading e-commerce pure player in France wishes to scale up its logistics organization currently close to saturation.
- Account for 2020 projected evolutions in product flows and in the number of references, as well as upcoming changes in business model and service offer
- Draft the design for the new site :
- Process definition for receiving, storage, order preparation and returns (small and wide size products)
- Evaluation of processing costs and staffing for each position
- Site sizing and layout
- Work organization to be implemented
- RFI to logistics equipment suppliers
- Project business case: Capex, Opex, ROI
- Implementation plan
- A logistics complete with the processes capable of delivering the customer promise defined by the company (fulfillment lead time and daily cut off time)
- A business case and implementation plan granting the decision making for the executive committee
When customer service improves, how to keep order preparation costs under control?
Our store replenishment frequency has increased, resulting in a decrease in order size and an increase in the distance travelled by each picker in the warehouse; how do we keep the cost per piece under control?
- Review of the distribution center operation
- Identification of quick wins to optimize the current operation
- Benchmark against various industries best practices
- Study of potential solutions for each activity and benchmark against the current process after optimization (baseline)
- Design of the target solution and roadmap for implementation
- Modernization of the logistics operation allowing for new opportunities in terms of service to stores, while keeping under control the per unit processing costs
- Improvement in workstations ergonomics, allowing to secure workstations’ staffing over time and reduce workers sick leave
Warehouse performance audit (Processes, organization and information systems) (Leisure goods and toys)
- Improve performance and service level of a third party logistics provider
- Improve visibility from the client’s side
- Conduct a complete assessment on the warehouse operational performance along 4 dimensions : organization, processes, WMS and KPI
- Production of a detailed and time phased action plan (20 projects to correct the 60 malfunctions identified) prioritized on the basis of the potential stakes
- Pragmatic understanding of the situation by the customer
- Validation of the action plan by the 3PL
- Implementation of the action plan to guaranty a 12% increase in productivity and a noticeable improvement in customer service level
Leading of the construction program for a new central warehouse (Retail)
Secure and assist the management for the construction program of a new, highly mechanized logistics site (42 000 m²), east of Paris.
- Assist the project manager in the decision making and risk management
- Conduct the daily PMO with global and detailed follow up on each batch (building, mechanized equipment, ergonomics, associated equipment, logistics IS, HR, transfers, …)
- Greater visibility provided to all participants and decision makers
- Easier decision making and risk anticipation
- Delivery of first units on schedule