about this project

PBI have been engaged with our Client for over 18 months. Since then the focus of the engagement has been around Production, in particular; Factory Waste, Giveaway, Production Throughput and Labelling.

There are also multiple ‘ongoing’ improvement projects, one of the improvements set in motion is reducing 'Excess Pallet Movements'. This was an outcome from a VSM / Kaizen Event on ‘end to end process from NPD to payment of goods’. This project is looking at the pallet movements within a third-party storage facility and the subsequent movements of raw materials from between the facility and our Clients factories.

There was an additional focus on sending material directly to the manufacturing sites where possible to avoid staging at the third-party warehouse - avoiding double handling and the additional costs associated.

Project Scope

• 4 third-party warehouses
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• Material movements into Elgin and Aberlour (factory locations)
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Improvement Strategy

• To reduce the amount of material being staged at the third-party warehouse

• Ship raw material (Packaging) directly to the third-party warehouse, where possible

• Renegotiate the current excess pallet movement contract to reduce surcharges

Benefits Delivered

• 240 pallet spaces were cleared at Elgin - cost avoidance of £137,372

• Reducing the lorry movements between Perth and Elgin, we have seen a reduction in pallet movements (Jan - June) between 2022 and 2023 of 3,400 - nearly 50% reduction - cost saving of £24,879 over the same time period (~£50,000 per annum)

• 500+ issues associated to original VSM / Kaizen Event - 30 related to warehousing