Manufacturer Teams with Canon to Streamline its Warehouse Management Operation
Major manufacturer optimizes its warehouse and distribution center to achieve a critical goal: create a more efficient, smooth-running operation.
Challenge: Improve Workforce Management to Enhance Production Processes and Timelines
One of the country’s leading manufacturers approached Canon Business Process Services for help. The company was struggling under the pressures of a changing distribution environment, grappling with a lack of skilled labor, and trying to manage operations with inefficient processes. Labor management was a particularly serious, ongoing problem. For example, the manufacturer was working with seven different temp agencies across its manufacturing and distribution facilities. Overseeing this labor approach was burdensome. The company had to communicate with the temp agencies; determine where to best allocate the temp employees on any given day; keep accurate schedules; and find coverage for employees who called in sick. After selecting Canon as the right partner to turn things around, the first priority was clear: implement a plan to stabilize the manufacturer’s labor environment.
Canon Provides the Solution That Optimizes Technology and Workflows and Solves the Workforce Challenge
While the manufacturer wanted Canon to optimize technology and workflows, solving the workforce challenge took precedence. One reason is that the company is always dealing with a compressed timeframe within which to get parts picked from the warehouse environment and delivered to the production areas. Any delays in that process put production workers behind. When those delays happen daily, costs add up. Our team addressed this instability by deploying a more reliable, skilled workforce than any temp agency could offer. As important, this workforce is now being managed by a single source, Canon, versus seven different providers. Our team also implemented technology that enhanced process efficiencies for picking parts used in the manufacturing process. This included integrating a warehouse management system (WMS) into the company’s existing SAP enterprise resource planning (ERP) system.
Client Realizes Warehouse Optimization Along with Cost Reductions
Our new workforce optimization approach helped the manufacturer reduce its production turn times while also ensuring that more final products were completed within their allotted timeframes. Along with improved labor management and better process flows, the manufacturer’s key “wins” include cost reduction, less lost/misplaced inventory, and much less downtime for its production line. The ability to stay operational and fluid has translated into significant cost savings for the manufacturer, where downtime can translate into tens of thousands of dollars per day in lost productivity. Our client has stated that an important part of its mission is to deliver innovative solutions that help create a world that works more efficiently. By enabling a more integrated, proficient and cost-effective warehouse operation, Canon is helping the manufacturer deliver on its vision.