congebec the case of congebec a partnership with di-mart payal aniche javerchand ioana ravoiu amy...

Congebec

The case of Congebec

A partnership with Di-Mart

Payal Aniche JaverchandIoana Ravoiu Amy Furgoch

Congebec

Overview Recommendation Implementation Key Takeaways

Company values • Integrity • Teamwork • Respect • Accountability • Excellence • Empowerment

Congebec

Overview Recommendation Implementation Key Takeaways

Company values • Integrity • Teamwork • Respect • Accountability • Excellence • Empowerment

Congebec

Overview Recommendation Implementation Key Takeaways

The mandate By 2020 Congebec will be saving over 112 000$ per year as well as improving company reputation and increasing their accountability through innovative solutions.

Congebec

Overview Recommendation Implementation Key Takeaways

Agenda• The importance of Di-Mart • Issues• Recommendations

o Inventory Managemento HR

• Implementation• Key Takeaways

Congebec

Overview Recommendation Implementation Key Takeaways

Di-Mart: The customer

Leading retailer for underserved communities

Fastly growing company

Adaptable to different markets

Congebec

Overview Recommendation Implementation Key Takeaways

The issues Lack of inventory identification

Outdated inventory system

Inefficient use of labour

Unclear employee directions

Delayed supplier communication

Congebec

Overview Recommendation Implementation Key Takeaways

Issues Continued

Inventory Managemen

t

Human Ressources

Congebec

Overview Recommendation Implementation Key Takeaways

Issues Continued

Inventory Managemen

t

Human Ressources

Congebec

Overview Recommendation Implementation Key Takeaways

Inventory Management IssuesUntraceabili

ty • Late trigger for low

inventory levels • Errors in slots

location• Lack of tracking of

expiration dates

Manual Palet

Identification• Inefficient use of

labour • Increase in human

error

Congebec

Overview Recommendation Implementation Key Takeaways

Inventory Solution

Congebec

Overview Recommendation Implementation Key Takeaways

Electronic Inventory System

• External Purchase• Will keep track of:

o Inventory levels o Inventory location o Product expiry dates o Identification of transportation method

Congebec

Overview Recommendation Implementation Key Takeaways

EPOD System « Electronic Proof of Delivery »

Accessible on phones, tablets and other electronics

Scans bar codes on pallets each time they are moved

Identifies locations of pallets

Requires signature of employees

Nicholas Pedneault

Congebec

Overview Recommendation Implementation Key Takeaways

AdvantagesEmployee responsability Inventory traceability Increased labor efficiency Decrease in human error Electronic order history

Congebec

Overview Recommendation Implementation Key Takeaways

Cost Savings

Error Reduction Labor Efficiency

Congebec

Overview Recommendation Implementation Key Takeaways

Cost of errors

Tangible

• Employee time

• Returns and recalls

• Delays

Intangible

• Company Reputation

• Customer Relationships

Congebec

Overview Recommendation Implementation Key Takeaways

Di-Mart Cost of Errors

1655 items/ night * 6 nights/week * 52 weeks/ year= 500 000 items shipped/year

Assuming 1% error on items = 5000 errors/ year

Assuming the average cost of error is 1 hour at $15/hour=$75000 savings per year from error reduction

Congebec

Overview Recommendation Implementation Key Takeaways

Cost of Labour Inefficiency

Saving Time on Paperwork

Manual UPC Cost inscription

Tagging and untagging pallet

Congebec

Overview Recommendation Implementation Key Takeaways

Di-Mart Cost of Labour

240 orders/ night * 6 nights/week * 52 weeks/ year= 75 000 items shipped/year

Save 0.5 hours per order = $ 37500/ year in employee time

Congebec

Overview Recommendation Implementation Key Takeaways

Total Savings

112 500 $ per year from Di Mart Alone

Congebec

Overview Recommendation Implementation Key Takeaways

Issues Continued

Inventory Managemen

t

Human Ressources

Congebec

Overview Recommendation Implementation Key Takeaways

Human Ressources

Human Errors

Congebec

Overview Recommendation Implementation Key Takeaways

« Employees should reduce their trust in

one another and perform the audit more vigilantly »

Congebec

Overview Recommendation Implementation Key Takeaways

Core Values • Teamwork• Respect • Accountability

Unalignment

Congebec

Overview Recommendation Implementation Key Takeaways

Human Resources Solution

Congebec

Overview Recommendation Implementation Key Takeaways

Human Ressources Solution

• EPOD system that will empower employees to more responsability and accountability

Congebec

Overview Recommendation Implementation Key Takeaways

Training Sessions2 training sessions

Before the implementation of the EPOD system

After the implementation of

the system Assessment

Congebec

Overview Recommendation Implementation Key Takeaways

Reception Before

• Repalettization• Inventory count• 3 different papers

• PO• BOL• Receiving sheet

After

• Repalettization• Inventory

scanning• No need to

write down the information

Congebec

Overview Recommendation Implementation Key Takeaways

Storing Goods Before

• Manual inscription of UPC code, expiry date and number of cases

• Inappropriate storage

After

• Electronic Inventory System

• EPOD system • LESS

ERRORS

Congebec

Overview Recommendation Implementation Key Takeaways

Implementation

Q1 Q2 Q3 Q4 - Smooth

Employee Training Electronic SystemEPOD

2016

Congebec

Overview Recommendation Implementation Key Takeaways

Key Takeways

• EPOD • Debrief employees • Achive company vision