CASE STUDY
Lazer Logistics’ strategic initiatives successfully transformed distribution center’s performance and safety standards
Backstory
Lazer Logistics faced multiple challenges when it acquired a distribution center for a discount retailer. The operation experienced high claim costs, an increased number of accidents and near misses, high driver turnover, and significant variance in wait times for yard spotting moves. In response, Lazer conducted a diagnostic analysis to identify the root causes and collaborated with the customer to develop an improvement plan. This case study explores how Lazer’s strategic initiatives improved safety, efficiency, and overall performance at the distribution center.
Diagnosis
Lazer identified several critical issues that contributed to the distribution center’s challenges during the diagnostic analysis. The site had limited safety procedures, such as outside external lighting to indicate trailer safety and a physical bumper. Additionally, too few yard-spotting trucks and drivers resulted in a high workload for the existing drivers, increased accident rates, and driver attrition. Furthermore, several nearby facilities offered higher wages for similar positions, exacerbating Lazer’s driver retention problem.
Proposed Solutions
Lazer and the customer collaborated to develop a comprehensive plan to address the identified issues and enhance the performance of the distribution center. The proposed solutions included:
Increasing the fleet
Lazer recommended adding one truck to each shift. This measure aimed to reduce wait times and ensure a sustainable pace of 5-6 moves per hour, mitigating driver fatigue and decreasing accident rates.
Implementing physical locks
Enhancing wages
Key Takeaway
Outcomes
Implementing the improvement plan yielded significant positive outcomes for the distribution center. The following results were achieved:
Reduced accident costs
Decreased spotting turnaround
Enhanced safety
Improved driver retention
Previously experiencing an average turnover rate of 115% per year, the Lazer achieved driver stability for 24 months. The combination of increased wages, an additional driver and truck, and a supportive lead driver created an attractive work environment for the drivers.
Conclusion
Overall, the initiatives implemented by Lazer resulted in an estimated annualized value of $250-300K for the customer, derived from the cost savings associated with reduced accidents, improved efficiency, and enhanced driver retention.
Lazer Logistics’ strategic initiatives successfully transformed the performance and safety standards of the acquired distribution center. By addressing the root causes of the operation’s challenges, Lazer improved safety procedures, increased fleet capacity, enhanced driver wages, and provided experienced leadership.
These measures resulted in significant cost savings, reduced wait times, improved safety conditions, and eliminated driver turnover. The successful partnership between Lazer and the customer resolved issues and added substantial value to the center’s operations.