THE CHALLENGE
A private equity-backed consumer products company with $2 billion in annual sales
across three business units—culinary, health & beauty, and personal care—was
embarking on a major network redesign. As part of this initiative, they partnered with a
nationally recognized third-party logistics provider (3PL) to launch a new, state-of-the-art
2-million-square-foot distribution center.
However, the scale and complexity of the project presented significant challenges. The
company faced escalating costs and service-level concerns, compounded by the
operational intricacies of managing a facility of this size. Recognizing the critical need for
expert guidance to address these issues, they engaged The TAC Group to help navigate
and overcome these obstacles.
THE SOLUTION
Comprehensive Strategies for Cultural and Operational Improvement
To address the cost and service disruptions at the distribution center, The TAC Group
implemented a structured, hands-on approach designed to stabilize operations, foster
collaboration, and establish sustainable improvements.
OUR APPROACH
The TAC Group’s strategy was rooted in providing on-site support and triage services,
ensuring direct involvement in tracking issues, driving operational improvement, and
maintaining open lines of communication with the company’s leadership team. Key
objectives included:
- Support Primary Workstreams
– Provided oversight of critical operational workstreams, ensuring alignment and
collaboration with 3PL leadership.
– Established a focused approach to drive measurable results in high-impact
areas. - Provide Perspective to Client Leadership
– Conducted an in-depth assessment of the current operating environment,
delivering actionable feedback to the client’s executive leadership team.
– Provided insights into root causes of disruptions and potential long-term
solutions. - Improve Service Levels
– Addressed service disruptions to enhance order fulfillment accuracy and
timeliness. - – Focused on reducing delays and ensuring customer satisfaction.
- Sustainable Improvements
– Developed long-term strategies to stabilize operations and prevent recurring
issues.
– Introduced best practices to embed continuous improvement into daily workflows.
THE TAC GROUP ACTIONS
- On-Site Support and Triage Activities
– Issue Tracking: The TAC Group established a clear reporting structure for 3PL
focus areas, prioritizing key operational challenges. Accountability mechanisms
ensured timely resolution of identified issues.
– Real-Time Problem Solving: Collaborated with client and 3PL team members to
identify operational bottlenecks and recommend corrective actions. - Process Improvement
– Partnered with client and 3PL teams to develop and implement process
improvements that addressed root causes and mitigated risks of recurrence. - Reporting and Monitoring
– Delivered regular progress updates to client leadership, providing visibility into
ongoing efforts and their effectiveness.
– Established and monitored KPIs to measure progress and sustain improvements
in service levels and cost efficiency.
THE RESULTS
Through a structured approach to issue resolution, process enhancement, and stakeholder
collaboration, The TAC Group assisted the client in achieving:
✔️Improved operational efficiency and service reliability at the distribution center, raising
on-time service by 40%, increasing fill rates from 75% to 98%, and reducing unavailable
inventory by 60%.
✔️Enhanced communication between client and 3PL teams, fostering a collaborative
culture of continuous improvement.
✔️ Sustainable practices that stabilized operations and set the foundation for long-term,
mutual success.
The TAC Group’s hands-on support not only resolved immediate disruptions but also created a
roadmap for operational resilience, empowering the client to maintain high performance in their
distribution network.