- Service: Operations Excellence
Hopewell Logistics is always striving to improve its own performance to help its clients stay competitive in the marketplace. The company operates a distribution facility to support Campbell’s Canadian supply chain in Brampton, Ontario.
Given the desire to improve distribution center productivity and operational performance, Hopewell Logistics utilized Accellos’ partnership with West Monroe to implement discrete engineered labor standards and the FLEXdls labor management tool to complement the AccellosOne Enterprise 3PL warehouse management system they had been using for years.
Moving from historical data to forward-looking data
Hopewell’s existing KPI’s relied on historical data, which only provided limited information on daily order composition including customer specific requirements. As a result, Hopewell was looking for a solution that would enable them to better manage their business to Campbell’s day to day reality and have greater visibility into their labor requirements. Primary goals included:
- Increase warehouse productivity
- Standardize processes
- Apply engineered labor standards to order picking, forklift and shipping/ receiving functions
- Provide performance feedback to employees on the floor
- Leverage investment into recent upgrades to the AccellosOne Enterprise 3PL warehouse management system
- Use a reliable labor standard that is accepted by both employees and management
- Integrate all labor management reporting into an easy to use dashboard tool, AccellosOne Pulse
West Monroe’s approach
After assessing the current processes at Hopewell’s distribution center, Accellos confirmed the potential for productivity improvement by introducing a discrete engineered labor standard. Leveraging West Monroe’s proprietary FLEXdls software solution, we precisely modeled the operational constraints and conditions within their facility using actual data obtained through process observation.
We worked closely with Hopewell’s management team to capture the details of all existing warehouse processes. Each of the processes was then defined with precision using the standard calculation scripts within FLEXdls. Standards related data was collected on the warehouse floor, including:
- Material handling equipment travel speed under different load conditions
- Warehouse congestion
- Process times for material handling equipment
- Motion times for manual activities performed by staff
- Detailed warehouse travel map with defined travel rules for different types of equipment
We collaborated with the Accellos team to ensure transactional data from the warehouse floor and performance calculations were accurately transmitted via the bi-directional interface between the warehouse management system and FLEXdls.
With all of the data and configuration in place within FLEXdls, we conducted extensive audits to ensure the accuracy of the labor standard calculations. We led information sessions to ensure all employees understood the labor management program. We also trained Hopewell’s management team on AccellosOne Pulse’s functionality and reporting capabilities.
As a result of Accellos’ strategic partnership with West Monroe, Hopewell Logistics gained a reliable and transparent engineered labor standard that integrated into their existing system, achieved well over 10% in hard savings to their bottom line and gained visibility into productivity levels for all functions within their distribution center.
That’s business in the right direction.
I am extremely pleased that we were able to implement a stable labor management system so quickly that both our employees and management agreed was fair and accurate. So far, we’ve achieved 10% hard savings to our bottom line and we expect additional productivity enhancements over the coming months.
- Brian Hishon, Vice President, Service Delivery, Hopewell Logistics