Michelin has a global footprint, and found a partner in South Carolina.
The established distribution center was not well organized, poor housekeeping, and inventory control procedures were not robust.
The current 3PL contract was pass through thus no incentive for improvement resulting in high costs to Michelin.
Management control was greatly restricted and key personnel were constrained from taking appropriate steps to improve.
Work instructions were not comprehensive and associate training was inadequate.
Lack of an effective quality system with root cause analysis and validated corrective actions.
Established a piece rate cost structure to drive productivity and allow operational costs to flex based on transaction volumes.
Establish an improved culture with a focus on employee involvement and 5S to drive safety and productivity gains.
Realigned management team structure to properly define roles & responsibilities and ensure accountability.
Updated all work instructions and retrained the existing workforce.
Introduced new quality procedures to include 8D analysis for failures and validation of corrective actions.
The Ways the Client Benefitted
On-Time delivery increased from average 64% to 95%.
Monthly Lost time accidents decreased 55%.
Order error rate decreased from .55% to .02%.
Quantity. of units shipped increased 59%