| Client |
Multi-billion dollar rail car producer |
| Issue |
Client operated 3 warehouses and managed more than 120 40-foot storage containers. Client engaged Walker to assist with cost control and customer service issues such as:
- Excessive scrap and loss claims
- Poor order accuracy
- Rising backlog
- Poor visibility on parts’ receipt
- No supply-chain cost transparency
- Over 100 transportation vendors
|
| Scope |
Walker was engaged to coordinate over 200 suppliers in 15 countries and manage the related carriers to meet JIT delivery to forecast and line- side stocking needs for 8,000 parts in 22 kits daily (5.5 million picks/year)
|
| Solutions |
- Implemented the following processes:
- Kan Ban to line
- Accurate inbound labeling
-
Inbound exception management and claims management
- Designed local milk-run schedule
- mproved packaging
|
| Results |
- Reduced warehouses from 3 to 1
-
Reduced transportation vendors from 100+ to 20+
- Scrap/damage rate reduced to near-zero
- Order accuracy improved to greater than 98%
- Pick cycle reduced from 4 days to 3 improving backlog management improved
- 24x7 on-demand “hot pick” response
- 95% within 2 hours; remaining within 4 hours
- Part receipt visibility available within 2 hours
- Increased freight weight throughput by 49%
- Decreased cost per hundred weight by 46%
- Decreased expedited shipment costs by 40%
- Total savings ~$4M
|