How Streamlining Operations Saved a Distribution Company Time and Money

This was the situation: a family-owned warehouse and distribution company with thirty employees pulling in $30 million in revenue per year faced a shocking 25% turnover in management, resulting in a massive loss of foundational company process knowledge.

New employees lacked the time or access to fundamental training on the company’s workflow and procedures, leaving them frustrated and confused. The gradual unboxing of this problem left the company with $2 million in unlabeled and unorganized inventory, growing ship times, and an overcrowded warehouse. As anyone would, this business realized it wasn’t going to repackage itself quickly or efficiently. They needed help to protect their revenue, their workforce, and their reputation.?

So they called Poka-Yoke for a consultation. Poka-Yoke Solutions’ team crafted a course of action to reconcile inventory and improve catalog accuracy and ongoing inventory management. Next, they transitioned the company from paper-based to electronic order processing, thereby streamlining operations further and reducing errors. Then, they implemented a three-phase receiving and fulfillment process to allow the Warehouse Management System to fill orders faster and more accurately. Finally, to ensure every employee understood the new flow, they rolled out extensive company-wide training programs.

Gradually, the overstuffed and unlabeled warehouse became orderly again, and all of the employees regained the lost knowledge (plus more).

The Poka-Yoke Solutions team continued to monitor this company until its successful sale, and they calculated $347k annual savings and 107 recovered man-hours after the implementation of their new process. Orders shipped 86% faster, employees were happier and more efficient, and the company was set back on track to thrive.

“Asking people to explain why they do things has opened up a lot of opportunities for people to question what they do and how it can be improved,” said the company’s Vice President of Operations. “It has brought a more process oriented mindset to tasks that may have otherwise been on autopilot, and it has been a great way to make team members feel like their opinions and work are valuable.”

This is just one part of the Poka Yoke Solutions Effect. Poka-Yoke (Poh-kah YOH-kay) is a Japanese term for “error proofing” and that’s exactly what we do. Client results include? $803k in annual savings, 50% growth over the following three years post-implementation, 240 recovered weekly man-hours, 86% improved order-to-ship speed, and? 79% increase in workflow accuracy.

Change can be a scary thing for your business, but through deep exploration, trust, compassion, and a true understanding of your goals and current processes, we can enhance your efficiency, reduce your errors, and increase your profits.?

If any of this resonates, contact us to see how we can use the Poka Yoke Effect on you.