As a result of the review and analysis, the following corrections were implemented.
Communications – Weekly review meetings with minutes.
The Third Party Warehouse commissioned an online help desk and communications were centralised to allow all issues to be recorded and system generated measurements to be published.
Credits - Daily credit reconciliation's are now in place. This now allows each order to be reviewed and the cause of the problem to reviewed and fixed if needed.
Inventory accuracy – A finished goods warehouse (Third Party Warehouse) and a bulk warehouse (client) were implemented. The impact of the paperwork credits was backed out.
Delays in shipping orders – A printer was installed at the Third Party Warehouse so when an order is confirmed the invoice is printed in the warehouse.
The Third Party Warehouse also started to report non invoiced orders in the daily report.
Control: Future changes to be managed and reported
Weekly meetings – Face-to-face relationship management events.
Help desk reports – Web based facts on all topics with times and people involved and reporting of issues.
KPI reports - Agreed daily measurements for activity to show the performance of the Third Party Warehouse.
Cycle counts – For inventory accuracy and control.
Daily Inventory reconciliation's – To identify any data entry issues and eliminate errors until the new interface is in place.
New interface – Automation of all processes between the company and the Third Party Warehouse.
The review crossed both the client and Third Party Warehouse systems and identified a gap in the process.
By working together and using the facts, we were able to identify and correct the problems.
According to the client, “The physical stock take results were impressive with the best result in the company’s history.”
The relationship has settled and communications are now based on actual issues and situations.
No issue is left for more than a day or so.
There are cases where orders are entered, processed and ready for despatch within 30 minutes.
When a data entry error occurs, the customer is often called prior to having received the stock and informed of the problem and the credit note number on that call.
Staff are less stressed from being reactive however they are now starting to understand the impact and efforts needed in being proactive.
Customer reported problems have been all but eliminated; now conversations with sales staff are around business, not problems.