Mazda - Warehouse Management (2)

The warehouse project was actually pretty successful. We implemented fully fledged management systems in all their warehouses, trained management in management skills, implemented relevant KPIs, a planning tool and master schedule, supervisory shop floor tours... Well, the fully monty really.

I never thought I'd ever become an expert in warehousing and distribution. In a later project I was able to deepen my knowledge in that sector even further.

Mazda - Warehouse Management (1)

This is Dominic. He helped me loads in the project and was probably one of my best ever task forces. He was working as warehouse manager somewhere in the Midlands. The company gave already up on him, so they handed him over to me. He was extremely keen on getting trained up, he is intelligent, and after a while he knew "where to dig". He actually became a good consultant, as I trained him up like a junior consultant. After the project he was overqualified for his work. I think one day he wrote to me telling me he got promoted. That was good news.

Anyway, what we did with the warehouse section, we thorougly analysed them all. I think they had 5 throughout the country. They were all lacking the same: standards for each activity, good management, daily follow-up on the operation, no planning, no measurement of results... Basically, they had nothing and we had to start from scratch.

Climbing up from 50,000 to 550,000

Back to my target: 1 POP which meant CHF 50,000.

When I looked at the activity lists I saw that there were lots of tasks of which I thought were not really value added. I handed those lists back to the purchasers and asked them to undertake an A-B-C Analysis. A tasks are vital, B tasks not too important but have to be done, and C tasks are of no value. They were stuffed with C activities.

I asked what they would do in case there were no C tasks anymore. And they came up with A tasks like more negotiating, tendering, and what else a purchaser does.

Since they knew I was after their naked lives, well, sort of, I suggested the following and we made a deal: They should write down all the projects which needed re-negotiating and tendering, come up with a nice savings amount, and we all get rid of their C activities.

The result was astonishing: They all could keep their jobs, we got rid of C activities, reserved time for more A activities, henceforth gained CHF 550,000 of savings, half a million more than targeted! Hooray!

Nonetheless, it must be said, I still found half a person in the warehouse (which also belonged to purchasing) and this one had to leave the company.