Food giant taps Tom Zosel Associates to ensure maximum leverage of material handling and storage assets
Chicago January 27, 2006 Nestle USA has selected Tom Zosel Associates (TZA), specialists in providing cost-cutting solutions for distribution environments, to support its logistics operations and the associated storage complexity.
Beginning this month, TZA will take a deep look at Nestle USA's operations and will develop recommendations aimed at sharpening operational efficiency. The implementation of the distribution best practices program is intended to enable Nestle to identify hidden operational costs and further improve service and accuracy.
The program will kick off with a structured plan to compare processes in all warehousing stages of Nestle's distribution operations, including receiving, putaway and replenishment, case picking, pallet picking, loading and shipping.
Optimizing DCs, Avoiding Costs
TZA said its engineering team will start with process mapping and flowcharting to obtain greater visibility of general workflow, then progress until obtaining a detailed review and process identification at the elemental work breakdown level. Leveraging the identified workflow processes with industry practices, TZA will develop and implement a distribution optimization program focused on reducing equipment and labor costs while improving storage capacity and throughput.
A review of the warehouse management system (WMS) functionality, including analysis of inventory levels and turns, SKU counts, order profile by product line, current layout and slotting methodologies will help to further minimize operational costs by improving productivity and order accuracy while reducing order fill times, cycle times and product damage, according to TZA.
"We carefully selected providers to find the best fit for our operational requirements," said Steve Papke, director of operations for Nestle. "TZA has a strong track record in the food and beverage industry, and we are confident that their considerable experience in multiple distribution environments will enable us to optimize our distribution centers without major capital expenditures."
Nestle USA, with 2004 sales of $12.5 billion, is part of Nestlé S.A. of Vevey, Switzerland, the world's largest food company, with 2004 sales of $69.9 billion.
Additional Articles of Interest
Leading crafts company Creativity Inc. has found that, with a bit of trust and a lot of teamwork, a little consulting can go a long way in addressing supply chain pain points. Read more in "Crafting Success in Supply Chain Transformation," cover story in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
Successful supply chain executives differentiate themselves and their companies from the competition. Here are the skill sets you need to focus on. Read "Critical Skills for Effective Supply Chain Leaders" in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
Supply chain executives can drive profitability ahead if they closely align their supply chain strategies to five universal business plan challenges. Read more in "Collaborate to Innovate," in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
Consumers spent nearly $28 billion on the "Black Friday" after Thanksgiving 2005, up 21.9 percent over 2004's results. Great news for retailers, but a potential nightmare for supply chain executives trying to get the right product on the right shelf at the right time. The lesson: Now is the time to plan for the next peak shipping season. Read more in the "Seasons' Peakings," the Executive Memo column in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
Chicago January 27, 2006 Nestle USA has selected Tom Zosel Associates (TZA), specialists in providing cost-cutting solutions for distribution environments, to support its logistics operations and the associated storage complexity.
Beginning this month, TZA will take a deep look at Nestle USA's operations and will develop recommendations aimed at sharpening operational efficiency. The implementation of the distribution best practices program is intended to enable Nestle to identify hidden operational costs and further improve service and accuracy.
The program will kick off with a structured plan to compare processes in all warehousing stages of Nestle's distribution operations, including receiving, putaway and replenishment, case picking, pallet picking, loading and shipping.
Optimizing DCs, Avoiding Costs
TZA said its engineering team will start with process mapping and flowcharting to obtain greater visibility of general workflow, then progress until obtaining a detailed review and process identification at the elemental work breakdown level. Leveraging the identified workflow processes with industry practices, TZA will develop and implement a distribution optimization program focused on reducing equipment and labor costs while improving storage capacity and throughput.
A review of the warehouse management system (WMS) functionality, including analysis of inventory levels and turns, SKU counts, order profile by product line, current layout and slotting methodologies will help to further minimize operational costs by improving productivity and order accuracy while reducing order fill times, cycle times and product damage, according to TZA.
"We carefully selected providers to find the best fit for our operational requirements," said Steve Papke, director of operations for Nestle. "TZA has a strong track record in the food and beverage industry, and we are confident that their considerable experience in multiple distribution environments will enable us to optimize our distribution centers without major capital expenditures."
Nestle USA, with 2004 sales of $12.5 billion, is part of Nestlé S.A. of Vevey, Switzerland, the world's largest food company, with 2004 sales of $69.9 billion.
Additional Articles of Interest
Leading crafts company Creativity Inc. has found that, with a bit of trust and a lot of teamwork, a little consulting can go a long way in addressing supply chain pain points. Read more in "Crafting Success in Supply Chain Transformation," cover story in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
Successful supply chain executives differentiate themselves and their companies from the competition. Here are the skill sets you need to focus on. Read "Critical Skills for Effective Supply Chain Leaders" in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
Supply chain executives can drive profitability ahead if they closely align their supply chain strategies to five universal business plan challenges. Read more in "Collaborate to Innovate," in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
Consumers spent nearly $28 billion on the "Black Friday" after Thanksgiving 2005, up 21.9 percent over 2004's results. Great news for retailers, but a potential nightmare for supply chain executives trying to get the right product on the right shelf at the right time. The lesson: Now is the time to plan for the next peak shipping season. Read more in the "Seasons' Peakings," the Executive Memo column in the December 2005/January 2006 issue of Supply & Demand Chain Executive.
