Lean Distribution at First Brands Group

Through this article, David Haley addresses the complexities of managing distribution variability and the evolving trends in global logistics. He outlines the challenges of fluctuating volumes and traditional temporary labor solutions, proposing alternatives like permanent part-time employees and automation. David also examines the impact of political and economic changes on global distribution and emphasizes the importance of stability. He highlights critical lean methodologies at First Brands Group, such as standardization, systems leverage and automation and stresses the need for a continuous culture of improvement to enhance operational efficiency.

Managing Distribution Variability: Challenges and Effective Solutions

The biggest challenge in distribution is the variability. The hockey stick pattern, where volume increases dramatically at the end of the month or worse at quarter-end periods, stresses the operation and the staff. The converse of that is managing costs when volumes are down. Traditionally, the “solution” has been temporary labor. Operations spike their temporary labor percentage to handle these spikes and mandatory overtime with your permanent staff. Neither of these methods builds an engaged workforce.

"Managing distribution variability requires innovative solutions like leveraging part-time employees and automation, while future global distribution trends highlight the need for stability amid political and economic shifts. Embracing lean methodologies, such as standardization and systems leverage, ensures continuous improvement and efficiency."

A couple of solutions that have helped are using permanent part-time employees. This labor pool consists of workers not looking to be employed full-time, such as retirees and students. Another alternative is companies that offer the ‘gig’ model, where people sign up for open roles online. Automation can also help, but the investment needs to be justified. The key to employing automation solutions is to build for the spikes. If your volume increases by 30 percent, that needs to be the minimum engineered standard for the system solution. Be careful that the inputs and outputs of the material flow support the increased velocity.

Shaping the Future of Global Distribution: Political and Economic Shifts

The global economy faces significant changes driven by political upheaval and supply chain disruptions. Ongoing conflicts, such as the wars and tensions over Taiwan and rising protectionist and isolationist sentiments in the U.S., influence global distribution. Companies are increasingly seeking stable trading partners focusing on efficient supply chains. While reshoring efforts are underway, they are limited, and the emphasis is on achieving stability in an evolving landscape.

Critical Lean Methodologies at First Brands Group: Standardization, Systems Leverage and Automation

a. Lean is not very complicated from my perspective. Suppose you focus your team on reducing waste in the operation. It becomes most effective when the team doing the work is driving the change with some coaching. We look at:

 1. Standardization—Develop a consistent and effective work method. Once you have standardization, then your improvement projects can take flight.

2. Systems leverage—We can create waste by not utilizing our systems to improve information and material flow. Workarounds are often invented to offset perceived flaws in the system that make it work.

3. Automation—Where can we leverage technology to reduce processing time? These solutions need to fit into your operation. Speeding up part of your process may create gaps. Make it a piece of a puzzle that fits together perfectly.

b. The key is to create a continuous culture where you are never done looking for better execution. Travel is the most significant time consumer in a Distribution operation. A focus on reducing travel is a great place to start.