Blue Yonder Case Studies Enhancing Labor Productivity

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	Enhancing Labor Productivity Blue Yonder

Enhancing Labor Productivity

Blue Yonder

Technology Category	Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries	Equipment & Machinery
Applicable Functions	Warehouse & Inventory Management
Use Cases	Inventory Management Warehouse Automation
Services	System Integration
Challenge	Briggs & Stratton, the world’s largest producer of air-cooled gasoline engines for outdoor power equipment, was facing a challenge in its warehouse labor management. The company's replacement parts division ships aftermarket and service parts worldwide from two facilities. It handles between 70,000 to 75,000 SKUs representing $40 million to $45 million in inventory. Prior to 2003, the Menomonee Falls Distribution Center (MFDC) had no standardized way for associates to do their jobs or to measure productivity. The MFDC management team felt they could get greater productivity if they standardized work methods, set goals and measured results. To help research this hypothesis the University of Wisconsin Supply Chain Consortium conducted a study that suggested there was significant opportunity for return on investment if the MFDC deployed labor management technology. Read More
About Customer	Briggs & Stratton is the world’s largest producer of air-cooled gasoline engines for outdoor power equipment. The company designs, manufactures, markets and services these engines for original equipment manufacturers (OEMs) worldwide. Briggs & Stratton engines are incorporated into products as diverse as lawnmowers, race cars, farm equipment, generators, pressure washers, pumps and welders, as well as many other industrial and commercial applications. Briggs & Stratton’s replacement parts division ships aftermarket and service parts worldwide from two facilities: a 300,000 square foot distribution center (DC), and a 225,000 square foot outside facility. It handles between 70,000 to 75,000 SKUs representing $40 million to $45 million in inventory, including parts for acquired brands such as Generac (now Briggs & Stratton Home Power) and Simplicity (now Briggs & Stratton Yard Power). The two facilities have both distribution and packaging operations, and ship approximately 26 million pieces annually. Read More
Solution	Briggs & Stratton implemented JDA Warehouse Labor Management first in its traditional distribution operations. The company turned the system on in “monitoring mode” one month before the actual go-live date to get a baseline on existing performance. As is common with most companies JDA has worked with, Briggs & Stratton found it was working at only 67 percent of standard for its operations. However, within a month of going live the company was able to reduce its pick, pack and ship headcount by about 18 percent while maintaining throughput. Soon after, performance improved to 100 percent to 110 percent of standard. Following completion of the DC implementation, Briggs & Stratton turned its focus on its packaging operations. These occupy half of the facility, with about 95 percent of all parts being kitted, representing approximately 26 million pieces annually. The light manufacturing environment required a different approach to labor management. The entire workflow from receiving and putaway through the kitting operations to transfer to the DC had to be included. Measuring performance of the kitting process entailed incorporation of machine-based timings not present in traditional distribution operations. The flexibility of JDA’s solution made implementation straightforward. Read More Log in to view content
Contents

Technology Category

Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Equipment & Machinery

Applicable Functions

Warehouse & Inventory Management

Use Cases

Inventory Management

Warehouse Automation

Services

System Integration

Challenge

Briggs & Stratton, the world’s largest producer of air-cooled gasoline engines for outdoor power equipment, was facing a challenge in its warehouse labor management. The company's replacement parts division ships aftermarket and service parts worldwide from two facilities. It handles between 70,000 to 75,000 SKUs representing $40 million to $45 million in inventory. Prior to 2003, the Menomonee Falls Distribution Center (MFDC) had no standardized way for associates to do their jobs or to measure productivity. The MFDC management team felt they could get greater productivity if they standardized work methods, set goals and measured results. To help research this hypothesis the University of Wisconsin Supply Chain Consortium conducted a study that suggested there was significant opportunity for return on investment if the MFDC deployed labor management technology.

About Customer

Briggs & Stratton is the world’s largest producer of air-cooled gasoline engines for outdoor power equipment. The company designs, manufactures, markets and services these engines for original equipment manufacturers (OEMs) worldwide. Briggs & Stratton engines are incorporated into products as diverse as lawnmowers, race cars, farm equipment, generators, pressure washers, pumps and welders, as well as many other industrial and commercial applications. Briggs & Stratton’s replacement parts division ships aftermarket and service parts worldwide from two facilities: a 300,000 square foot distribution center (DC), and a 225,000 square foot outside facility. It handles between 70,000 to 75,000 SKUs representing $40 million to $45 million in inventory, including parts for acquired brands such as Generac (now Briggs & Stratton Home Power) and Simplicity (now Briggs & Stratton Yard Power). The two facilities have both distribution and packaging operations, and ship approximately 26 million pieces annually.

Solution

Briggs & Stratton implemented JDA Warehouse Labor Management first in its traditional distribution operations. The company turned the system on in “monitoring mode” one month before the actual go-live date to get a baseline on existing performance. As is common with most companies JDA has worked with, Briggs & Stratton found it was working at only 67 percent of standard for its operations. However, within a month of going live the company was able to reduce its pick, pack and ship headcount by about 18 percent while maintaining throughput. Soon after, performance improved to 100 percent to 110 percent of standard. Following completion of the DC implementation, Briggs & Stratton turned its focus on its packaging operations. These occupy half of the facility, with about 95 percent of all parts being kitted, representing approximately 26 million pieces annually. The light manufacturing environment required a different approach to labor management. The entire workflow from receiving and putaway through the kitting operations to transfer to the DC had to be included. Measuring performance of the kitting process entailed incorporation of machine-based timings not present in traditional distribution operations. The flexibility of JDA’s solution made implementation straightforward.

Impact #1	Reduced workforce 18 percent in first month while increasing pick, pack and ship throughput
Impact #2	Increased packaging productivity 20 percent within the first two weeks of implementation
Impact #3	Labor savings of approximately $1 million annually from warehouse labor management

Impact #1

Reduced workforce 18 percent in first month while increasing pick, pack and ship throughput

Impact #2

Increased packaging productivity 20 percent within the first two weeks of implementation

Impact #3

Labor savings of approximately $1 million annually from warehouse labor management

Benefit #1	Distribution productivity went from 67 percent of standard to 114 percent
Benefit #2	Reduced headcount by 18 percent while maintaining throughput
Benefit #3	Increased packaging productivity 20 percent within the first two weeks of implementation

Benefit #1

Distribution productivity went from 67 percent of standard to 114 percent

Benefit #2

Reduced headcount by 18 percent while maintaining throughput

Benefit #3

Increased packaging productivity 20 percent within the first two weeks of implementation

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Overview

Enhancing Labor Productivity

Operational Impact

Quantitative Benefit