Executive Briefings

Re-Vamp: Automotive 3PL Turns Losses to Profit in 9 Months

Challenge: Our 3PL client experienced challenges handling a service parts returns operation that was added to their scope of services for a major automotive OEM. Site managers, experienced in repair and refurbishment processes but not in distribution processes, had set up the facility and operations with little advance notice. The operation was losing approximately $100K per month.

Solution: Our firm was engaged to assess and re-engineer the facility and operations.  Our analysis revealed the cost overruns resulted from poor facility layout; lack of slotting methodology; lack of system driven processes; and, no documented processes.

Results: The assessment and a 9-month period of re-engineering and change management resulted in: Reconfigured racking and implemented slotting methods - storage capacity increased 40%; Systems changes and process improvements - labor cost per unit decreased 32%; Productivity Improvements - Daily through-put increased by 38%.

The account P&L went from losing $1.2 million to a favorable $200K the next year.

About the Solution Provider: Triad Logistics Partners is a boutique general supply chain services consultancy.  Our resumes include a combination of practical and consulting experience that provides a comprehensive "been-there/done-that" understanding of our clients' viewpoints and experiences.  Our strategic and operations advisory services are based on years of experience in world-class supply chain organizations.

Web:  http://www.Team3PL.Com or http://www.TriadLogistics.Com

Email:  Info@TriadLogistics.Com

Phone:  214-358-7234

Solution: Our firm was engaged to assess and re-engineer the facility and operations.  Our analysis revealed the cost overruns resulted from poor facility layout; lack of slotting methodology; lack of system driven processes; and, no documented processes.

Results: The assessment and a 9-month period of re-engineering and change management resulted in: Reconfigured racking and implemented slotting methods - storage capacity increased 40%; Systems changes and process improvements - labor cost per unit decreased 32%; Productivity Improvements - Daily through-put increased by 38%.

The account P&L went from losing $1.2 million to a favorable $200K the next year.

About the Solution Provider: Triad Logistics Partners is a boutique general supply chain services consultancy.  Our resumes include a combination of practical and consulting experience that provides a comprehensive "been-there/done-that" understanding of our clients' viewpoints and experiences.  Our strategic and operations advisory services are based on years of experience in world-class supply chain organizations.

Web:  http://www.Team3PL.Com or http://www.TriadLogistics.Com

Email:  Info@TriadLogistics.Com

Phone:  214-358-7234