DaimlerChrysler

Supply Chain – Process Optimisation

DaimlerChrysler’s UK car and truck parts distribution service is executed from a 400,000 sq ft central warehouse facility located in Milton Keynes.

The demands in respect of dealer service are significant with a by 8.00am delivery for all parts orders, stock, express and VOR. Not a simple task when you consider the facility contains 120,000 sku’s and handles 22,000 line items daily. To compound matters, the company had experienced significant growth complicated by systems changes and the recent consolidation of Daimler and Chrysler parts operations. Davies & Robson were commissioned to facilitate a major process review which primarily comprised of key internal personnel from the UK operations and project support from the European Head Office.

The objective was to primarily review and improve the warehouse processes at Milton Keynes. However, the delivery was complicated by a natural concern regarding Head Office involvement and what was viewed as the key to success, the important participation of ‘coal-face’ staff resulting in a large team of different cultures and a range of skills and abilities.

Mixed teams, comprising UK and European staff were established, to pursue a structured programme which primarily mapped the existing processes throughout the warehouse. Specific ‘pinch points’ were identified followed by a physical review of the mapped processes which identified deviations from standard. The review was exhaustive, but highly participative and as result a specific action plan was identified and pursued resulting in major improvements in performance.

The General Manager for Warehouse Operations, Bill Lockerbie, said…“Focussing as we did on Optimisation (Process Improvement) and Qualification (personnel development) we achieved improvements beyond our original expectations. However, the initial set up and pre project work played a vital part in the success of the overall programme and this is where Davies & Robson proved invaluable. They were able to interpret the brief from our European colleagues into a meaningful presentation to our workforce and management. By facilitating the group as they did they were instrumental in gaining the initial "buy in" from the workforce which was to be an important factor in achieving the success of the whole programme throughout the year. A telephone survey conducted throughout the Mercedes Benz, Chrysler and Jeep Dealer Network at the end of the year, confirmed the success of the project. Improved availability, reduction of errors and on time deliveries were positively recognised.”

www.daimlerchrysler.com