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Confectionery Distribution

Background

• Distribution division of major confectionery manufacturer
• Number of warehouses both at manufacturing sites and standalone
• Unionised environment

Problem

• Intensive competitive pressures on cost and service levels
• Inflexible workforce
• Over staffed
• Narrow job roles
• Inefficient and physically tiring shift system
• High overtime
• Seasonality
• Workplace disbelief that things could be better

Outcome

• Implemented flexible working
• Reduced the number of crews from 4 to 3
• Optimal working patterns introduced
• 20% improvement in operating costs
• Improved customer service levels
• Lean work teams with expanded role and higher performance
• Elimination of overtime

Gallaher

Background

• UK’s leading tobacco company
• Crewe - national distribution centre for all tobacco products

Problem

• Highly seasonal business within the month and year
• Not flexible enough to allow effective utilisation of labour
• High overtime culture
• Inot meting cost and quality targets

Outcome

• Introduced a flexible annual hours scheme
• Labour now matches demands
• 13% savings on labour costs
• Absenteeism reduced
• Skill availability when needed as skill base improved
• Salaried workforce
• Working smarter means efficiencies improved

Tesco

Background

• Large fresh, chilled and frozen food depot
• Rapid, just in time response necessary
• Centralised warehouse

Problem

• Massively different presence requirement across the day, week and year
• Overtime dependency
• Higher productivity needed
• Buffer stock too high, but cannot be caught short hand

Outcome

• Matched warehouse manning levels to demand through flexible hours approach
• Achieved 99.9% success rate for deliveries
• 98% of drops within 15 minutes of allotted time
• Average 36½ hour week
• Crews organised around temperature zones
• Six crew system designed with reserve days to use for unexpected requirements

Distribution Warehouse

Background

• Distribution warehouse for major biscuit manufacturer based in Yorkshire
• 27 warehouse operatives and management staff
• Unionised environment

Problem

• Heavily seasonal business
• Relied on voluntary overtime and agency labour to cope in business critical peak
• Day to day fluctuations not matched due to fixed shift length and set weekly hours
• Separation from real business requirements
• High overtime culture

Outcome

• Annual hours introduced through open consultation with staff and unions
• Two contract levels to reflect previous two distinct bands of overtime
• Increased productivity

Distribution Centre for Fashion Industry

Background

• Approximately 1000 employees
• 3500 shop deliveries per week
• Non unionised

Problem

• Rapidly changing business demands
• No significant change experience to date
• Requirement for improved response to match seasonal and weekly delivery demands
• Need to reduce unit cost

Outcome

• Flexible hours system introduced
• Productivity uplift of 10 % +
• Reduced labour turnover
• Reduced absence
• Established Sunday working
• Significant change in working practices
• Increased development opportunities
• Increased incentive earnings

Port Authority

Background

• Irish port and harbour authority
• Capacity for commercial and cruise ships
• People employed on fixed 7am to 4pm pattern to load and unload ships

Problem

• Varying hours per day needed as times available for work directed by tides
• High overtime
• Poor productivity
• Majority of time spent doing mainly non value added work as vessels unavailable in fixed hours

Outcome

• Flexible working system introduced
• Based on teams with staggered start and finish times
• Flexible to move staggered times to fit with arrival/departure of vessels and tide
• Considerable improvement in service levels
• Operatives take home pay guaranteed and hours worked considerably fewer

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