Transport : Improvement of logistics performance

Transport and wharehousing
Case study
07/17/2015

Context and challenges

Argon Consulting was called in by a leading passenger transport operator to identify paths of progress for its internal logistics: flows between the logistics platform and internal customers (maintenance centers, stations, administration), organization of the equipment storage platform, including maintenance spare parts. The goal was two-fold: improve the service rate for internal customers, while keeping operating costs under control (transport and warehousing).

The expectations :

  • Define the conditions of the extension to other internal customers of a “next day” service offer, which already existed within a limited scope
  •  Identify the main factors of internal performance in the main storage platform (reception, integration, order preparation, organization and versatility of the teams, transport interface)
  • Characterize the need to relocate the storage zones and for possible capital outlay
  • Draw up a business case and an implementation schedule for the recommendations

Approach and methodology

Argon Consulting conducted a diagnostic of the operational performance, based on :

  • Observations in the field
  • Interviews with players from logistics and logistics’ customers
  • Workshops with the operational teams
  • Data analyses to characterize the performance of the processes in comparison with external benchmarks

Argon Consulting then supported the customer with the implementation.

Results

The diagnostic identified a series of opportunities for progress in terms of service (broadening of the offer and improvement of the service rate) and internal efficiency (the cost of developing the logistics processes), including :

  • Changes to the working hours of the morning and afternoon shifts in order to better meet customer needs and limit overlap periods
  • Re-definition of the organization in order to increase the size of the teams (in the initial situation, the size of the teams was limited, a fact that impacted performance) and strengthen versatility
  • Proposal of different order preparation and sorting methods
  • Re-definition of the storage zones and the location of articles in order to reduce floor space requirements and optimize movements
  • Definition of needs for traceability and the implementation conditions

“The team from Argon Consulting provided us with expert knowledge in the fields of transport and warehousing. They became an integral part of our project team, while retaining a critical eye and the will to improve our way of working significantly”.