Elimination of damages occuring during truck transport in a company of the consumer goods industry
Department Leader Logistics, Warehouse and Export
Company:
Procter & Gamble Manufacturing OHG
Role:
Department Leader Logistics, Warehouse and Export
Industry:
Consumer Goods
Revenue:
$68 Billion
Employees:
P&G: > 100,000
Locally: > 500
Situation:
Regularly, pallets shipped via truck to Russia arrived at the destination with wet pallets, making the product unsellable
HQ/Location:
Locally: Gross Gerau
Website:
www.pg.com
Responsibility(Revenue/Employees):
- Department Leader Logistics, Warehouse and Export
- Leader oft he Foccused Improvement Team
- 40 Employees in the department / 6 members in the FI Team
- Yearly spend for transportation >3 million € (transport costs)
Context:
- Find root cause for transport damages (Yearly costs of >100,000 €)
- Find and implement a solution to avoid like damages in the future
Actions:
- Foccused Improvement Team set up and led
- Root cause found: Established pallet wrapping / stretching process with PE foil does not provide proper protection against water dripping /running into the trailer (if truck cover has a leakage)
- Pallet wrapping process changed in production area (new program developed and implemented)
Result:
- No further water damages after implementation of new process
- Yearly losses of >100,000 Euro eliminated
Special Challenges:
- It was not possible to observe the errors in real life due to the long transport routes from Germany to Russia. Accordingly, potential root causes had to be found via modelling and cause effect analysis.
- As the quality of trucks for the tradelane to Russia varies significantly and is not detectable in a reliable way, an elimination of the root cause (leakage of the truck) was not possible.