Helium was engaged by Rust-Oleum to complete an evaluation on its current operational model with the core objective of assessing its current 3PL Warehousing model and providing ways to optimise the end-to-end process and find margin improvement opportunities due to sub-optimal performance levels. At the conclusion of the initial diagnostic – helium’s services were retained to implement the identified solutions
Key achievements
Investment Gain
>$500k
Reduction in SSA claims
222%
Role-specific training
>60 hours
YoY reduction in stock write-offs
$50k
improvement to dispatch times
45%
less claims for pick variances p/mth
~55
SOP’s – developed & recorded
20+
efficiency gained in process times for core inventory tasks
>48%
Overview
Challenge
3PL Warehousing had unclear expectations and measurement framework for KPI’s and Service Expectations
Inventory position proved to be a root cause issue – Inventory Management framework required improvement
Existing team had evolved and required tools and training to manage outsourced 3PL
Solution
Facilitated an RFP for 3PL Warehousing services
Negotiated a new SLA for 3PL Warehousing services
Implemented an updated end-to-end Inventory Management program
Developed and implemented processes and framework to manage 3PL providers
Outcome
>15% savings on Warehousing-related costs
Improved speed-to-market
Standardised processes
Optimised supplier management
Improved decision making
Empowered workforce
Customer response
“They were hands on and prepared to help complete detailed work to support delivery of short-term initiatives. Ultimately, the project delivered financial gains/margin improvements in excess of our initial expectations. Our 3PL’s are operating significantly more effectively than ever before, at a lower cost base!”
Jack Hurst, General Manager – Rust-Oleum
Probably the best consulting investment I’ve been directly associated with. Our 3PL partner are a much better business for our investment in helium. The tide has lifted all our boats!”
Nigel Meakins, Managing Director – Rust-Oleum
