LOGISTICS RE-ENGINEERING

Indonesia

Sector

Beverages


Issue

A manufacturer’s growth potential was being undermined by their inability to maintain a consistant flow of product outbound from their plants


Solution

  • Automate the transport planning process
  • Introduce time slotting (6 windows per day) for trucks collecting from plants
  • Restructure plant vehicle flows and enforce queuing/loading disciplines
  • Streamline end-to-end materials handling through introduction of steel stillages
  • Introduce larger vehicles operating 24 hours per day
  • Relay depot vehicle flows and delivery van load/unload processes

Results

  • 50% increase in storage capacities at plant & depots
  • 450% increase in plant-depot transfer speed (down from 36 hours to 8 hours)
  • 55% increase in sales van trip per day (up from 4.5 to 7 trips) – with corresponding sales growth

 

Note: This client achieved a 30% sales growth (without new plant investment) over a 15 month period due to the above complemented by improved preventative maintenance