Requirement

• Significantly improvement in On Time Delivery in a Day 1 order, Day 2 delivery Commercial Frozen Food network.

Challenge

• Management didn’t recognize any real problem until a direct complaint was made to CEO at public event. Fact & data-based management was almost totally absent. Attempts to resolve had led to no improvement and reasons for failures were not understood. Failures appeared to be random.

Approach

• Data based measurement system was created to allow a daily measure of OTD.
• Management system refined to include key operational metrics between warehouse, remote warehouse, and Local delivery fleet.
• Detailed trend and pattern analysis around failures
• Failures traced to Delivery drivers (Not delivery routes, not customers, not SKU’s)
  • Route planning validated as good
  • Vehicle loading validated as good
  • SKU availability validated as good
  • Line management interaction was reviewed and found to be weak.
• Performance dialogues were introduced to review good and not-so-good performance
• Performance Improvement plans introduced.
• Visual performance/management of all aspects of operation created to allow transparency for all. (Pear management)

Results

• OTD lifted from 98% to above 99.9% within 6 months
• Customer feedback significantly improved and delivery-related complaints all but disappeared.
• Performance management process including visual management standardized and introduced company-wide.