Cosmetics Value-Add Distribution Case Study
Challenge
An international cosmetics value-add distribution facility was utilizing a single centralized raw material staging area which resulted in:
Poor quality – orders being built incorrectly because of wrong product being pulled
Low customer satisfaction – due to these errors
Long setup time – from confusion on the floor reducing the product flow (capacity)
Solution
Insource decentralized this staging area and implemented a visual control that consisted of color coding the packaging area to identify staging zones by product type, by line, and by order. This helped improved the department by:
- Eliminating quality errors due to mix product going to the wrong line
- Increased product flow by reducing the setup time per order
- Reducing forklift drivers man hours necessary to support the operation
- Rigorous screening, safety and training processes
Result
Partnering with Insource, the client achieves:
Higher quality – reaching unprecedented levels by cutting defects by 50% in just over two months
Greater customer satisfaction – large errors (key driver of dissatisfaction) reduced by over 90%
Lower cost – reduction in cost by increasing efficiency totaling 20% savings
You are probably wondering, what does Insource mean to me? We can answer that. Click the link below that best represents your role in your company and get more information on how we can help you.
- Cosmetics Value-Add Distribution
Insource helps client cut defects by 50% and reduce cost totaling 20% savings.
- Appliance Assembly
Insource increased quality levels to 99% and reduced overall throughput times from three days to a half day.
- Order Picking Services
Insource engineers a 48% accuracy improvement and a 57% productivity improvement.
- Distribution Services
Insource helps client cut defects by 73% in just over two months.