CAS SOLUTIONS COOLING CHALLENGES FOR A WARM SUCCESS CONNOR FLACK AMY LAM SAMANTHA RAO

MANDATE Provide a recommendation to allow Congebec to streamline its warehouse logistics.

MANDATE Provide a recommendation to allow Congebec to streamline its warehouse logistics. Increase in inventory gaps Inefficient slot locations Expiration of products

ANALYSIS RECOMMENDATION IMPLEMENTATION AGENDA A I R

ANALYSIS

ARI INTEGRITYTEAMWORKRESPECT ACCOUNTABILITYEMPOWERMENTEXCELLENCE VALUES

ARI TransportationMotionOver-processing Over-production Defects and miscommunications Excess inventory Waiting 7 COMMONS ″WASTES″ IN OPERATIONS

ARI TransportationMotionOver-processing Over-production Defects and miscommunications Excess inventory Waiting 7 COMMONS ″WASTES″ IN OPERATIONS

ARI TRANSPORTATION DEFECTS AND MISCOMMUNICATIONS WAITING 7 COMMONS ″WASTES″ IN OPERATIONS Disassemble pallets for air transport tagging Gaps between expected and received order quantities Time between Receiver and CSR to communicate variations

ARI IMPROVEMENT PRIORITIZATION IMPORTANCE URGENCY DEFECTS AND MISCOMMUNICATION TRANSPORTATION WAITING

ARI COMMUNICATION ACROSS SHIFTS 8:0023:30 21:30 6:00 (next day) 6:00 14:30

ARI COMMUNICATION ACROSS SHIFTS 8:0023:30 21:30 6:00 (next day) 6:00 14:30 Possible communication gaps between CSR and Pickers

ARI COMMUNICATION ACROSS SHIFTS 8:0023:30 21:30 6:00 (next day) 6:00 14:30 Possible communication gaps between Receivers and Pickers

ARI COMMUNICATION ACROSS SHIFTS 8:0023:30 21:30 6:00 (next day) 6:00 14:30 Some shifts do not overlap; communication between areas will be limited

ARI CURRENT LINES OF COMMUNICATION Receiving Sheet: Inventory Gap Information manually written on skid Location of skid manually entered Boxes on palette recounted Sheet sent to CSR Data updated in system Variations sent to CSR Product picking info written on worksheet CSR updates information Loading Plan sent to Customer Handwritten Loading Plan Manual order check

ARI CURRENT LINES OF COMMUNICATION Receiving Sheet: Inventory Gap Information manually written on skid Location of skid manually entered Boxes on palette recounted Sheet sent to CSR Data updated in system Variations sent to CSR Product picking info written on worksheet CSR updates information Loading Plan sent to Customer Handwritten Loading Plan Manual order check

RECOMMENDATION

ARI IMPROVEMENT PRIORIZATION IMPORTANCE URGENCY DEFECTS AND MISCOMMUNICATION TRANSPORTATION WAITING

ARI KEY ISSUES: Expiration of products Inventory gaps & Verification of quantities Confusion with slot locations SOLUTIONS: First-in-first-out inventory management Centralized information system: SCM Institute policy of double person audit Staggered shifts reduces communication gaps VALUES: Teamwork, Integrity and Accountability RECOMMENDATION DEFECTS & MISCOMMUNICATION WAITING TRANSPORTATION

ARI KEY ISSUES: Time spent disassembling pallets for air transport Locating goods in warehouse SOLUTIONS: Tagging goods based on method of final destination Tagging goods based on location in warehouse VALUES: Excellence RECOMMENDATION DEFECTS & MISCOMMUNICATION WAITING TRANSPORTATION

ARI KEY ISSUES: Delays of information spread to CSRs and receivers (e.g.: lost documents) SOLUTIONS: Input information directly into SCM VALUES: Teamwork RECOMMENDATION DEFECTS & MISCOMMUNICATION WAITING TRANSPORTATION

ARI Team verifications Building trust with employees Expired goods ETHICAL CONSIDERATIONS

IMPLEMENTATION

ARI Immediate Term 0-1 year ShortTerm 1-2 years Long Term 2+ years TIMELINE

ARI Create a Request for Proposal Contact possible SCM vendors Build work team with Lead Hands Communicate new initiatives with employees Use bulletin boards, internal memos, etc… Institute new policies of two-person audits for quantity verification IMMEDIATE TERM TIMELINE: 0-1 Years

ARI Invest in IT employees to maintain system Purchase terminals to be placed around warehouse Test system in Western Canada warehouse Overlap with current procedures Implement First-In-First-Out inventory management Reduce probability of inventory spoilages SHORT TERM TIMELINE: 1-2 Years

ARI Expand into warehouses across Canada Consider adding Enterprise Resource Planning functionality (e.g. staffing) Consider offering Supply Chain Management software functionality to major customer Further reduction of inventory gaps LONG TERM TIMELINE: 2+ Years

ARI RISKS AND MITIGATIONS Employees struggle the new system Customers dislike automation Technical glitches in the system Create development team to assist in customization of system with the developper Improve Congebec customer-employee communication Test in phases and maintain hard copies for contingency

OVERVIEW

MANDATE Provide a recommendation to allow Congebec to streamline its warehouse logistics. Increase in inventory gaps Inefficient slot locations Expiration of products

MANDATE Provide a recommendation to allow Congebec to streamline its warehouse logistics. Decrease in inventory gaps Efficient slot locations Reduced number of expired products

CAS SOLUTIONS COOLING CHALLENGES FOR A WARM SUCCESS CONNOR FLACK AMY LAM SAMANTHA RAO