This client is a leading distributor of private label and nationally branded hard and soft goods and provides late-stage customization to garments both in the field and centrally in distribution centers. The company’s PE owners planned to grow both organically and through an extremely aggressive plan for the acquisition of competitors. With revenue expected to almost double within five years, executives needed to reduce costs in operations while maintaining quality and delivery standards. The organization was struggling with the integration of newly-acquired regional competitors as their distribution and custom embroidery efforts remained at one centralized warehouse location. In addition, the client’s incentive scheme, which rewarded speed over quality, was counter-productive and needed re-tooling to achieve machine output utilization improvements in both individual and team work environment.
The broader Maine Pointe TVO™ engagement involved deploying cross-functional experts across operations, procurement, logistics, S&OP, leader and organization improvement (LOI) and data analytics. However, this success story focuses on the work we carried out to create value inside the distribution center.
With a brisk ongoing business and additional activity through acquisition, the company was struggling to achieve the necessary scale of operations in its central distribution center. Challenged with efficiently running a distribution organization that picks and ships approximately 4,000 orders a day, leadership was concerned about its ability to maintain expected customer service levels while continuing unprecedented growth trajectories as they folded new businesses into their core. This was exacerbated by a lack of logical flow in the warehouse, low digitization and a high turnover of staff.
Maine Pointe’s operations and subject matter experts led cross-functional alignment efforts to understand the business challenges at hand, learn from their growing pains and prioritize initiatives based on their desired goals of growth, margin maximization and cost reduction. Maine Pointe identified areas of immediate improvement across the operation and designed the acceleration of a variety of sustainable, scalable process improvements. More specifically, we worked side-by-side with our client’s team to:
Maine Pointe’s operations and subject matter experts worked closely with the client’s team to: