A leading fashion manufacturer in Germany and Europe commissioned the interim manager to optimize a service provider's returns processes and goods throughput times. He was also tasked with training the service provider's management team in the processing of remnants. The aim of the mandate: to significantly reduce unit costs.
The client produces fashion and lifestyle products (accessories) for women, men and children. The group of companies operates in over 30 countries. The returns are processed at 2 locations by a logistics service provider (contract for work and services). This service provider processes returns with the aim of returning items to the sales cycle as quickly as possible. The service provider takes care of the transportation, storage, order picking and storage of goods. It also offers various storage options: whether whole pallets in the high-bay warehouse, small items in boxes, bulky products on pallets or hanging goods.
Work and process reorganization at the two service provider locations
After recording the actual processes with documentation in VISIO, the interim manager evaluated the current productivity at the locations using Excel and Access. Based on the data evaluation, he created a tool for work preparation that enables dedicated, location-based resource planning based on electronic delivery notifications.
After evaluating and redesigning the processes, he also optimized the classification of goods and pre-sorting in incoming goods. In addition, the sorting stations were revised to consolidate the product types according to different product groups (men, women, accessories) and a new, more effective sorting strategy was developed. A redesign and repositioning of ergonomic work areas at the service provider meant that the individual work steps have now become significantly more efficient.
Workstations and processes redesigned together with the employees
The service provider had made incoming goods and sorting processes as well as internal transport very time-consuming and labor-intensive. In addition, the principles of workplace ergonomics had been ignored. In workshops and discussions, the interim manager recorded the individual stress levels at the workstations and worked with the employees to develop an improved approach for each work step.
In individual coaching sessions, individual approaches were highlighted. In most cases, proactive communication led to identification with the new work steps. In individual cases, however, personnel changes were also unavoidable.
White book for annual and interim inventories created and employees trained
In addition to the core tasks of the mandate, the interim manager also developed a white book for annual and interim inventories, which details the rules, process and responsibilities during the inventory. He also developed an Excel-based tool that documents the progress of the inventory and shows delays transparently. The interim manager supported managers and staff in applying the white paper correctly. The client later took over the documentation and the Excel tool at its headquarters.
Double-digit percentage reduction in unit costs
As a result, the interim manager was able to significantly reduce the work steps and quantities in the receiving, sorting and storage processes. Personnel costs (headcount) were significantly reduced, transparency increased and unit costs reduced by a significant percentage.
