- Had to be able to be integrated with DSC's WMS;
- Had to be able to measure and report on all of an employee's time, from shift beginning to end;
- Had to be dynamic so could be adapted as customers' need change;
- Had to have a database of pre-determined time standards.
To date, implementation of the program at 22 Logistics Centers in DSC's network (that includes 35 LCs—a total of more than 17 million square feet—plus 11 more locations DSC manages as a Lead Logistics Partner) has resulted in an average 20 percent reduction in labor management costs, with a highest cost reduction of 35 percent.
- DSC also found in terms of incentive-based compensation that savings are greater than payout amounts.
- For DSC and customers, this provides a standardized, dependable, measurable means of delivering on the promise of top performance.
- POP is also being applied to and getting good results with systems other than Red Prairie's DLx Module that have a less sophisticated data capture.
9. Mission Foods: IRVING, TX
As a leading tortilla producer, Mission Foods is an innovator in manufacturing quality tortillas, chips, salsa, taco shells and more.
As part of the distribution process, Mission Foods places all of its packaged products in returnable plastic containers (RPCs), which independent distributors then load onto their trucks. Mission Foods found that after the RPCs left the warehouse for deliveries, however, they were likely never seen again.
With a paper-based tracking process, it had no way to track if RPCs were returned to a different facility, or if they were ever returned at all. The company sought an asset control solution that would prevent this drastic loss of RPCs, which resulted in millions of dollars in lost revenue each year.
Mission Foods turned to Intermec Inc. for RFID asset-tracking technology. The solution: innovative RFID technology, utilizing Intermec IF61 readers, antennas, labels and PM4i printers. The results:
- $700,000 in initial savings;
- Average of 25 turns per container (seven turns equals breakeven point);
- 4 percent container replacement rate.
10. Landshire Inc.: ST. LOUIS
Over the past 50 years, Landshire Inc. has grown from a small regional sandwich producer to a national supplier of foodservice products, offering packaged sandwiches, hot sandwiches, pastry and roller grill items to convenience stores and retail locations throughout the country.
The company wanted to reduce its LTL costs on its frozen freight shipments and turned to Witte Bros. for help. Witte offers refrigerated/frozen LTL, dry LTL and truck load freight programs from its centralized location in Troy, MO—and boasts a 99 percent on-time delivery rate.
The third-party logistics provider is also innovative, helping Landshire save more than $200,000 annually in freight costs by pallet and package redesign. Witte re-configured the pallet footprint to allow more boxes on each pallet and changed the box design to hold more product while maintaining the same cubic size.
It was also able to change the height of pallet stack.