Value Stream Mapping
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1 Value Stream Mapping
2 Recovering money you didn t know was lost. This is the Supply Change. The opportunity: You can t really improve your operations until you can see them until you can get a truly complete and holistic view. A view that spans silos, departments, facilities and regions. Value Stream Mapping gives you that view. A view of goods, platforms and information everything that moves in, out and through every segment of your network. It lets you see really see what s going on. Over time, it s likely that you ve developed standard operating procedures for the different functions and processes of your supply chain. But behaviors change in the operation and operators deviate from standard operating procedures. By giving you a complete view a detailed physical map of every aspect, large and small, of your entire operation as it presently stands we can help you find new ways to improve efficiencies, product quality and overall operating margins. You ll see every flow of product, platform and data. Global Good: A Value Stream Map can help you root out inefficiencies and waste that are harmful to the health of our planet. Our solution can help you both measure and gain value from best-in-class sustainability practices. It s all part of CHEP s Better Planet initiative, as we work to reduce the impact of the supply chain on the environment. What we do: You may suspect that your supply chain has some inefficiencies, but where exactly are they? We can help you find them and fix them by collaborating with you to create a Value Stream Map. It s an easy-to-understand graphical depiction of your entire supply chain and includes all product, platform and data flows. This includes movements to and from your suppliers, DC-to-DC movements, DC-to-store movements and movements to reverse logistics centers. Working with you in collaborative sessions, we ll create your Value Stream Map through extensive on-site investigation as well as our proprietary Network Value Map software. We ll provide you with thorough documentation of all aspects of the current state of your processes, including DC and store level facilities and transportation networks. With your map in-hand, we can help you benchmark your various facilities performance against one another. We can work with you to identify best practices as well as the root causes behind network inefficiencies. And we can help you uncover new ways to improve efficiencies and operating margins. A Value Stream Mapping initiative can bring clarity to your entire supply chain network or to your supply chain within a local facility or region. No one has been inside more facilities than we have. Our Lean Six Sigma experts have seen so many processes that they can quickly identify ways to improve how your supply chain operates. They ll help you both fix problems and apply best-in-class techniques or processes that can help you avoid problems in the future.
3 Identifying waste and the ways to eliminate it. Innovation Movement Water Usage Racking Loading Man Hours Sustainability Shift Changes Load Transfers Transport Deviation from SOP Platform Related 95% of our customers found 12 or more areas to improve efficiencies. Energy Consumption Inventory Raw Materials IT Trailer Pool Unit Load Handling Unit Load Optimization Picking Dry or Wet Lines Conveyance Sorting CO2 Emissions Dry Goods Breaks Staging Defects
4 How we ll work together. CHEP s Lean Six Sigma experts have been inside more facilities than anyone else. They ll work with you to review and document your current operations, focusing on the following opportunities: + Quick wins, identifying things that can be changed immediately + Transportation efficiencies, including collaborative freight and network optimization + Platform efficiencies relating to type, cycle time, sourcing and more + Innovation, including the exploration of new methods, resources or platforms to improve your process + IT, streamlining and optimizing your data flows + Environmental sustainability improvements resulting from increased efficiencies and reduced waste How you ll benefit: Through the years, we ve helped our customers: + Gain a holistic view of their entire supply chain, from supplier to customer + See without silos an entire picture of how every component relates to the others + Uncover root causes of inefficiencies + Gain a complete view of platform movements, material flows and information flows + Identify value-added and non-value-added flows + Uncover hidden flows and delay points + Unsalables reduction, increasing on-shelf availability by finding and eliminating the root causes of product damage + Model new flows, discover reporting inaccuracies and eliminate unnecessary flows Only CHEP: + Optimize hand-off points No one has been inside more facilities and improved more supply chains than CHEP. No one else can match our vast knowledge of the flow of data, goods and shipping platforms within supply chains. Our software and processes were designed based on our aggregate experience from around the world. No one can bring more clarity to more aspects that impact the most effective and efficient movement of goods. We look forward to working with you. + Discern how multiple components affect inventory turns + Resolve conflicting data received from two or more locations + Benchmark the performances of various facilities against each other
5 We look at your entire system and identify every opportunity. 1 Information Planning Software Ordering System Orders Store 1 Store 2 Store Vendor 1 Vendor 2 Shipping Office Pick Ticket 3 3 Load Truck 4 6 Waste & By-Products DC Reception Quality Control Storage Pick Stage 1. Forecasting Efficiency: Forecast overall improvements gained from efficiencies and automation. 2. Automation Solution: Assess inventory and project gains from automation. 3. Lean Optimization: Using lean methodologies, find improvements from packaging reduction, unit load optimization and process optimization. 4. Handling Optimization: Locate opportunities for reduced handling, lessening injury potential. Improve process throughput. 5. Scheduling Automation: Improving scheduling and accuracy through automation. 6. Transport Efficiency: Increase cube. Decrease load time. Optimize outbound transport and improve scheduling. 7. Waste Reduction: Minimize waste via optimized transport, improvements on by-product hierarchies.
6 Creating value by increasing efficiency. We showed a discount retailer how to save 3.4 million by cutting product damage by half. Total inventory value: Pre-CHEP product damage cost: Post-CHEP product damage cost: Annual savings: 945,000,000 6,800,000 3,400,000 3,400, Million 945 Million in inventory 3.4 Million (Estimated) 6.8 Million Where our customers have gained the most value: Quick Wins 8% Transport 25% Platform Related 30% Innovation 7% IT Environmental Sustainability 12% 12% Unsalables Reduction 6%
7 This is the Supply Change. Together we can make it happen. North America 5897 Windward Parkway Alpharetta, GA 30005, USA Tel: Latin America Blvd. Manuel Ávila Camacho Nº 24 Piso 22 Lomas de Chapultepec México D.F. Tel: +52 (55) Value Stream Mapping. Just 1 of 19 Retail Solutions from CHEP. If you re looking to improve your supply chain, let s talk. Europe Weybridge Business Park Addlestone Road, Weybridge, Surrey KT15 2UP United Kingdom Tel: Middle East & Africa CHEP House 7 Westville Road Westville 3629 Durban, South Africa Tel: +27 (0) CHEP.com CHEP 2015 All Rights Reserved. REVSM15 A Asia Pacific Level 6, Building C 11 Talavera Road North Ryde NSW 2113 Australia Tel:
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