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© 2013 enVista, LLC
Operational Value
Assessment Proposal
for
[Retailer]
Understand
current
processes
• Interview
executives,
managers, IT
super user,
and
operations
• Benchmark
current
operations
performance
• Review
operations for
standard
execution as
well as
exceptions.
Evaluate
current
operations
• Review
product
handling steps
and order
fulfillment
• Facility
operation
layout review
• Compare
operations
performance
with industry
metrics.
Document
system
requirement
s
• Review
current WMS
system usage
compared to
system
capability.
• Review data
integrity and
real-time
updates in
support of
decision-
making.
• Review
integration
gaps.
Review
organization
structure
• Evaluate org
structure
alignment
within
operations,
inventory
control,
procurement,
and order
fulfillment.
• Review
current and
future labor
performance
metrics.
Develop
Cost Benefit
Analysis
• WMS system
enhancement
or module
setup/configur
ation
• Warehouse
layout and
slotting
plan/execution
• SOP
standards
• Labor
performance
program setup
Operational Assessment Objectives
3
Manipulating product in location,
Managing multiple U of Ms/location
DSI data entry/scanning,
Response time delays,
Selecting pick sequence/
location, Managing multiple
scripts/ activity
Verifying pick sequence on
pick list, reviewing
substitutions and adjustments,
managing dock staging areas.
Benchmarks – Picking Activity
4
WMS-RF: ~ 9 FTEs WMS-Voice: ~10.8 FTEs
NOTE: $50,000 FTE Cost, Including Benefits
Savings - Picking
As-Is Process Documentation
Future Process Flow
1. Remove product from first two levels of shaded existing
reserve carton rack.
2. Move product to Eagle building.
3. Repopulate with product from existing floor and
mezzanine level picking areas.
Phase 1 – Inventory Conversion
Value
Assessment
Lean
Distribution
Design
10 Weeks
Slotting
Execution/ MHE
Selection
3-4 Weeks
MHE
Implementation
2-5 Months
SOP Development
4-6 Weeks
Supervisor/End
-User Training
2 Weeks
System Vendor
Evaluation
6 Weeks
Ph 1. WMS/Voice
Implementation
7 months
Execute Pallet/
Layer U of M
Handling
2 Weeks
Recommendations
Alternative #1 - ROI
Benchmark - Picking
FQ Current Breakdown
• Retailer 1: 103.11
• Retailer 2: 116.90
• Retailer 3: 171.08
• Retailer 4: 168.24
Sample Included Eight (8)
Picking Operators
© 2013 enVista, LLC
Investment
Summary…
Engagement
Lead ParticipateTasks
Operational Value Assessment
1. On-Site Interview of Key Stakeholders
2. Observe Current Operations and Future Plans
3. Benchmark Current Operations Against Best in Class
Performance
4. Validate Current IT System Usage, as well as Future
TecSys System Capabilities
5. Identify Risks Factors
6. Quantify Cost Savings and Capital Expenditure Options
7. Recommend Timeline and Resource Requirements to
Execute Changes
8. Discuss Labor Performance and Metrics
 enVista
 enVista
 enVista
 enVista
 enVista
 enVista
 enVIsta
 enVista
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
Investment Summary
Operational Assessment Case Study
Challenge Response Result
• [Home Décor Retailer] is
Growing Annually at a 20%
Rate Yet Operates Their
Business on Tribal
Knowledge, Non-Value
Added Manpower, and
Disparate Systems.
• [Home Décor Retailer] is
also challenged by their
international business
model (Operations, Buying,
Transportation, IT – US
Based; Store Operations –
Central America)
• [Home Décor Retailer] is
looking for a strategy and
tactical steps to execute
upon to manage growth.
• enVista positioned our Retail
Strategy experience with like
customers
• Execute Three Actual
Methodology (People,
Places, Processes) to
Validate Business Need.
• Support Approach with Client
References and Detailed
Sample Deliverables.
• Develop an Approach,
Timeline and Cost that is
Thorough and Cost Effective.
• enVista implemented a six
week Logistics Execution
Assessment that involved
interviews and observations
across [Home Décor
Retailer]’s entire network.
• enVista’s strategic plan for
[Home Décor Retailer]
included the following areas:
• Conduct C. America
LNA to determine
how many in-country
buffered DCs should
exist.
• Conduct
Transportation and
WMS technology
evaluations.

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enVista Corp - Operational Assessment

  • 1. © 2013 enVista, LLC Operational Value Assessment Proposal for [Retailer]
  • 2. Understand current processes • Interview executives, managers, IT super user, and operations • Benchmark current operations performance • Review operations for standard execution as well as exceptions. Evaluate current operations • Review product handling steps and order fulfillment • Facility operation layout review • Compare operations performance with industry metrics. Document system requirement s • Review current WMS system usage compared to system capability. • Review data integrity and real-time updates in support of decision- making. • Review integration gaps. Review organization structure • Evaluate org structure alignment within operations, inventory control, procurement, and order fulfillment. • Review current and future labor performance metrics. Develop Cost Benefit Analysis • WMS system enhancement or module setup/configur ation • Warehouse layout and slotting plan/execution • SOP standards • Labor performance program setup Operational Assessment Objectives
  • 3. 3 Manipulating product in location, Managing multiple U of Ms/location DSI data entry/scanning, Response time delays, Selecting pick sequence/ location, Managing multiple scripts/ activity Verifying pick sequence on pick list, reviewing substitutions and adjustments, managing dock staging areas. Benchmarks – Picking Activity
  • 4. 4 WMS-RF: ~ 9 FTEs WMS-Voice: ~10.8 FTEs NOTE: $50,000 FTE Cost, Including Benefits Savings - Picking
  • 7. 1. Remove product from first two levels of shaded existing reserve carton rack. 2. Move product to Eagle building. 3. Repopulate with product from existing floor and mezzanine level picking areas. Phase 1 – Inventory Conversion
  • 8. Value Assessment Lean Distribution Design 10 Weeks Slotting Execution/ MHE Selection 3-4 Weeks MHE Implementation 2-5 Months SOP Development 4-6 Weeks Supervisor/End -User Training 2 Weeks System Vendor Evaluation 6 Weeks Ph 1. WMS/Voice Implementation 7 months Execute Pallet/ Layer U of M Handling 2 Weeks Recommendations
  • 10. Benchmark - Picking FQ Current Breakdown • Retailer 1: 103.11 • Retailer 2: 116.90 • Retailer 3: 171.08 • Retailer 4: 168.24 Sample Included Eight (8) Picking Operators
  • 11. © 2013 enVista, LLC Investment Summary…
  • 12. Engagement Lead ParticipateTasks Operational Value Assessment 1. On-Site Interview of Key Stakeholders 2. Observe Current Operations and Future Plans 3. Benchmark Current Operations Against Best in Class Performance 4. Validate Current IT System Usage, as well as Future TecSys System Capabilities 5. Identify Risks Factors 6. Quantify Cost Savings and Capital Expenditure Options 7. Recommend Timeline and Resource Requirements to Execute Changes 8. Discuss Labor Performance and Metrics  enVista  enVista  enVista  enVista  enVista  enVista  enVIsta  enVista  [Retailer]  [Retailer]  [Retailer]  [Retailer]  [Retailer]  [Retailer]  [Retailer]  [Retailer] Investment Summary
  • 13. Operational Assessment Case Study Challenge Response Result • [Home Décor Retailer] is Growing Annually at a 20% Rate Yet Operates Their Business on Tribal Knowledge, Non-Value Added Manpower, and Disparate Systems. • [Home Décor Retailer] is also challenged by their international business model (Operations, Buying, Transportation, IT – US Based; Store Operations – Central America) • [Home Décor Retailer] is looking for a strategy and tactical steps to execute upon to manage growth. • enVista positioned our Retail Strategy experience with like customers • Execute Three Actual Methodology (People, Places, Processes) to Validate Business Need. • Support Approach with Client References and Detailed Sample Deliverables. • Develop an Approach, Timeline and Cost that is Thorough and Cost Effective. • enVista implemented a six week Logistics Execution Assessment that involved interviews and observations across [Home Décor Retailer]’s entire network. • enVista’s strategic plan for [Home Décor Retailer] included the following areas: • Conduct C. America LNA to determine how many in-country buffered DCs should exist. • Conduct Transportation and WMS technology evaluations.