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Identification of 5 major efficiency improvement opportunities

April 06, 2016 2625 Views

hermex

Description
Hermex Distribution is a dedicated logistics service provider for Fuji Film in Tilburg. The logistics operation includes transportation and warehousing.

Opportunities
Expected reduction of DC delivery time, increase of direct deliveries and potential introduction of barcodes on finished product triggered Hermex Distribution to identify potential efficiency improvement opportunities in the logistics operation and related Information Systems scenarios (use of RF, upgrade to SAP enterprise or implementation of dedicated WMS).

Solution
Groenewout analyzed the logistics processes and establish flow diagrams based on a questionnaire and interviews. For each identified opportunity a scenario with steps to be taken was worked out and benefits were estimated as well as the required investments. This included a fit / gap analysis on existing systems, resulting in requirements for equipment, IT and organizational changes.

Benefits
Groenewout identified 5 major efficiency improvement opportunities. The improvements would lead to savings of 15% on employee costs. All improvements related to organizational changes. All improvements are feasible without adjustments to the current information systems. Also the use of RF would not substantially improve the Hermex operation.