The customer operates as a global distributor, representing 11 brands sourced from 14 vendors in luxury consumer goods. Their strengths rely in jewelry, watches, and writing instruments. To efficiently manage their operations, the client has strategically divided Europe into 6 distinct distribution regions.
Business Challenge
The warehouse in Amsterdam distributes about 21.000 SKU’s to 2 major platforms, 24 boutiques and 1911 wholesalers. A large part of the EU warehousing function is moved towards Amsterdam; in the coming years the volume will double and the company started to apply Lean Management in its warehouse. The objective of the lean analysis is to improve, secure and guarantee lead time and service performances and cost reduction/-control.
Approach
The project included the following steps:
- The current state of Value Stream Map of the spare parts flow for watches is set up by walking the flow, making videos and interviewing the involved employees
- Improvement teams are composed working on improvements in the warehouse and material handling
- A performance control system is developed with clear KPIs and loss ownership
Results
- By implementing a flow-oriented process, we achieved a reduction of nearly 16% in lead times. This strategic approach not only eliminated dead stock but also significantly minimized overall inventory levels, resulting in approximately €250K in savings (equivalent to 8% of total inventory value).
- By executing the 5S methodology and standardization, we achieved a 17% reduction in average search and picking time
- The implementation of the Performance Control System (PCS) has led to enhanced structure, clarified roles and responsibilities, and notable performance improvements
