Problem --- The Company had to variants of their best-selling products but there were instances of mis-delivery by their Delivery Crew wherein the flavors were interchanged between customers.
Effect --- Customer rejection. Product damage due to Double-handling as the goods had to be returned to the warehouse and putaway again.
Backgrounder --- There was a need to review the manner stocks were loaded onto the truck & delivered to the as there were no discrepancies in the stocks issued by warehouse to them. One thing was determined is that for ease in Picking of stocks, the Delivery Summary (Picklist to other companies) is arranged according to SKUs (and not by customers) and arranged in a pallet. The stocks on the pallet are then loaded onto the truck by the helper in random fashion. Since each truck would have about 30 to 40 customers (drop-points), there is a high probability of mix-up as the delivery crew is in a rush to finish all delivery in one day.
Immediate Proposal --- Prepare 2 Delivery Summaries -- First one for use by the warehouse is where the stocks to be picked are sorted by SKUs and the second one to be given to the delivery helper/driver is the stocks sorted by customers. Instead of loading by SKUs onto the truck, the driver determines the delivery route and loads the stocks according to the customers ie last drop is loaded first and the first drop is loaded last.
My Investigation --- Loading by customers will not help prevent mix-ups in delivery as the problem is not the manner in which the stocks are loaded but rather the VISUAL APPEARANCE OF THE PACKAGING OF THE TWO VARIANTS WHICH IS PRONE TO MIX-UP, to wit:
1. To save on Packaging Inventory costs, the Company decided to use the same carton printing for all the variants of their Potato snack (to allow interchangeablilty) and the only thing to distinguish them is a rubber stamp at the bottom of the face of the carton side indicating the flavor;
2. The rubber stamped Flavor appears only on two sides of the box which means that if the box was loaded onto the truck lengthwise vis-a-vis the truck's rear cargo doors, the helper cannot tell which flavor is which carton;
3. The SKU codes do not appear on the carton itself and neither do the SKUs appear on the Invoice or Delivery Summary thereby preventing any means of double-checking what was unloaded at the customer;
4. If you look at the Nestle product, the SKU code appears in Big Fonts and the background of the Sku Code is in different bright colors like Red or Yellow;
5. In other products, the Text printed is similar to maintain Brand awareness but the Text color is totally different (not similar colors) like purple and red;
6. The size (S, M, L, XL, XXL) of a certain product appears in Huge Fonts to appear prominently;
7. The idea is to make it as easy for the delivery helper to distinguish between different SKUs even if he cannot read. Also, people who did not have the benefit of a good education can still distinguish numerals and that is why it is important to have the SKU Code Numbers appear prominently and in color.
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Effect --- Customer rejection. Product damage due to Double-handling as the goods had to be returned to the warehouse and putaway again.
Backgrounder --- There was a need to review the manner stocks were loaded onto the truck & delivered to the as there were no discrepancies in the stocks issued by warehouse to them. One thing was determined is that for ease in Picking of stocks, the Delivery Summary (Picklist to other companies) is arranged according to SKUs (and not by customers) and arranged in a pallet. The stocks on the pallet are then loaded onto the truck by the helper in random fashion. Since each truck would have about 30 to 40 customers (drop-points), there is a high probability of mix-up as the delivery crew is in a rush to finish all delivery in one day.
Immediate Proposal --- Prepare 2 Delivery Summaries -- First one for use by the warehouse is where the stocks to be picked are sorted by SKUs and the second one to be given to the delivery helper/driver is the stocks sorted by customers. Instead of loading by SKUs onto the truck, the driver determines the delivery route and loads the stocks according to the customers ie last drop is loaded first and the first drop is loaded last.
My Investigation --- Loading by customers will not help prevent mix-ups in delivery as the problem is not the manner in which the stocks are loaded but rather the VISUAL APPEARANCE OF THE PACKAGING OF THE TWO VARIANTS WHICH IS PRONE TO MIX-UP, to wit:
1. To save on Packaging Inventory costs, the Company decided to use the same carton printing for all the variants of their Potato snack (to allow interchangeablilty) and the only thing to distinguish them is a rubber stamp at the bottom of the face of the carton side indicating the flavor;
2. The rubber stamped Flavor appears only on two sides of the box which means that if the box was loaded onto the truck lengthwise vis-a-vis the truck's rear cargo doors, the helper cannot tell which flavor is which carton;
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| The SKu code appears prominently on top. Nestle Cerelac show Sku codes with a Red or Yellow background color depending on the flavor (courtesy of Nestle Vevey SA) |
4. If you look at the Nestle product, the SKU code appears in Big Fonts and the background of the Sku Code is in different bright colors like Red or Yellow;
5. In other products, the Text printed is similar to maintain Brand awareness but the Text color is totally different (not similar colors) like purple and red;
6. The size (S, M, L, XL, XXL) of a certain product appears in Huge Fonts to appear prominently;
7. The idea is to make it as easy for the delivery helper to distinguish between different SKUs even if he cannot read. Also, people who did not have the benefit of a good education can still distinguish numerals and that is why it is important to have the SKU Code Numbers appear prominently and in color.
REMEMBER: AT THE DELIVERY POINT, IN THE EYES OF YOUR CUSTOMER, THE DELIVERY HELPER IS REPRESENTING YOUR COMPANY.!!! WHY NOT MAKE IT EASY FOR HIM???
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