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LOC Case Study: Order Management and Planned Production Sequencing
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

 

 

 


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