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e-Commerce Industry:
Six Sigma / Warehouse
and Inventory Management Improvement
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| | Client: |
| A
major e-commerce supplier of books, videos, CDs, etc. supplying the global consumer
market.
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| | Problem: | | Need
to increase product throughput, reduce cycle times and processing errors within
9 months to meet the market demands of the holiday season and increase market
share. Need to develop an in-house capability to sustain and improve upon the
gains realized during the pilot phase of the project.
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| | Approach: | | Applied
a blended Six Sigma, TQM and Lean Manufacturing team-based methodology. Defined
strategic goals for the initiative and pilot projects across entire distribution
network. Formed and trained corporate steering committee and tactical coordination
team. Conducted multiple Black Belt training sessions for 35 individuals across
the organization. Trained site steering committees, project teams and Green Belts
at each site in the network. Defined performance targets, metrics and data collection
systems for each project. Mentored corporate and site management in leading/supporting
improvement efforts.
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| | Results:
| | Increased
inventory record accuracy. Increased product throughput and reduced cycle times.
Significantly increased order picking rate while slashing picking errors. Increased
capability of operating processes to meet the seasonally-based fluctuations in
volume. Improved performance of complex automated sorting equipment. Established
the infrastructure enabling the client to develop additional in-house Six Sigma
practitioners and sustain the gains. Implemented an effective Six Sigma methodology
on a large scale in 9-12 months producing $15 million in bottom-line results.
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