Seven Keys To Improving Distribution Productivity

April 1, 2004
Many logistics operations are under significant pressure to reduce costs while increasing customer service and managing higher levels of distribution

Many logistics operations are under significant pressure to reduce costs while increasing customer service and managing higher levels of distribution complexity. To provide valuable insight to companies facing these or related logistics challenges, Tom Zosel Associates (TZA) released its new report, The Seven Keys To Improving Distribution Productivity.

The report identifies seven key principles that should guide companies seeking to improve distribution productivity and achieve the type of double-digit productivity gains that have been realized by many other companies. These results can be realized through the intelligent application of engineering, labor-reporting software, and execution management. The principles in the report have been developed based on TZA's experience for more than 20 years helping many of the world's logistics leaders achieve significant productivity gains.

"While many companies have significantly reduced operating costs and increased performance through productivity improvement programs, the majority of the market is still unaware of the potential that exists in their companies to realize substantial performance gains through productivity initiatives," said Evan Danner, president of TZA. "Companies can achieve double-digit productivity gains, at low risk, by applying a proven set of tools and techniques."

TZA provides a comprehensive solution for productivity improvement. Key components include:

• Best-in-class engineering to develop the right distribution procedures, methods and performance standards;

• Powerful labor planning and reporting software for both distribution operations and delivery drivers;

• Execution management, with a proven methodology that ensures the potential gains of productivity improvement are realized during implementation.

The Seven Keys to Productivity Improvement (content addresses the following topics)

1. Start with individual accountability;

2. Build standards based on the right methods and procedures;

3. Productivity can be improved through software or engineering, but results are maximized when both are used in combination;

4. Focus management’s attention on the details;

5. Train operators and supervisors for success;

6. Incentives can work -- but only if done well;

7. Utilize formal change management teams and techniques.

In an era of increased logistics pressure to reduce or control costs while improving customer service, productivity improvement programs often represent the highest payback, least risk opportunity to achieve these challenging goals.

TZA helps clients reduce operating costs, substantially improve logistics processes, eliminate bottlenecks, increase throughput and capacity, achieve material handling goals and optimize total logistics network performance.

For more information, visit www.tzaconsulting.com.