Case Study: Navigating the Currents of Change: A Seafood Distributor’s Journey to Operational Excellence
Challenge:
A seafood distributor servicing the lower mainland faced operational challenges with their manual supply process. They experienced significant yield loss, outdated inventory, and difficulties in processing and fulfilling daily orders efficiently. Despite having order deadlines, frequent and last-minute order changes led to inefficient and reactive processing. Their delivery trucks operated without a fixed schedule, departing only when filled. The company’s “can-do” spirit was hindered by a lack of structured processes, reporting systems, and unified direction.
Approach:
To address these issues, we conducted a comprehensive analysis of the entire value chain to pinpoint inefficiencies. We assembled specialized SWAT teams to tackle specific areas of concern, fostering collaborative problem-solving within the organization. The focus areas for these teams included:
Streamlining the finishing process
Enhancing packing efficiency
Trucking optimization
Yield maximization
Inventory management and rationalization
Warehouse process improvement
Food safety and quality enhancement
Refinement of freezing and thawing procedures
Our approach involved engaging with stakeholders at every organizational level to refine processes and implement a robust System of Work. This system emphasized visual management, interconnected performance indicators (KPIs), and leadership’s routine operational tasks.
Impact:
The collective efforts of the teams fostered a culture of continuous improvement and organizational alignment on problem-solving strategies and cooperative processes. The tangible benefits realized included:
A 25% enhancement in yield efficiency
A 25% increase in finishing productivity
A 30% boost in packaging effectiveness
A 32% rise in on-time departures
A 15% decrease in overtime requirements
A $3 million reduction in outdated stock
A $2 million savings from minimized quality-related losses and improved freezing processes.
“It was the transformation we needed. Six years later and it’s the norm. It’s the way we do things. We set records in Sales and Production every year and we are the envy of the company.”
