《物流英语》教学案例10.docx

KNOLL INC. - NORTH AMERICACustomized solution for consolidating outbound shipments yields high marks.KnollSummaryKnoll Incorporated is a global leader in office furnishings, design and manufacturing. The company wanted to consolidate the outbound shipments of several North American manufacturing plants into one network. This consolidation would allow customers to receive entire orders simultaneously and reduce overall transportation costs. Penske's solution to develop consolidation warehouses and a unique load plan layout resulted in a 10 percent reduction in transportation and warehousing costs and a 45 percent increase in their overall customer satisfaction rating.ChallengesTo consolidate outbound shipments of Knoll's four North American manufacturing plants into a single distribution network• To maximize Knoll's existing infrastructure during an economic downturn with little or no interruption in businessTo increase on-time delivery rates, order accuracy and shipping efficiency to Knoll's customersSolutions / ResultsPenske established centrally located mixing centers, resulting in a 1() percent reduction in transportation and warehousingcosts.• Penske and Knoll devised and met an aggressive 60-day transition strategy for two existing cross-docking and manufacturingfacilities. During this time, Penske moved more than 10,000 products enabling Knoll to maintain productivity levels.• Penske deployed its unique "footprint" loading approach to expedite loading and increase product visibility. Knoll realized a45 percent increase in customer satisfactionGetting StartedWith an expansive network of more than 400 dealerships and showrooms in North America, Europe, Asia and Latin America, Knoll has worked diligently to ensure every customer receives each order efficiently, on time and accurately. To accomplish this, Knoll employed Penske Logistics to consolidate outbound shipments of its four North American manufacturing plants into a single distribution network.Previously, customer shipments were unconsolidated. As each of Knoll's manufacturing plants are responsible for different product lines, the company had to make multiple shipments to each customer to fulfill a single order. This distribution approach created a costly gap of inefficiency within Knoll's operations.Look Before You Leap:Taking Stock of Knoll's Current Distribution OperationsKnoll knew a major shift in its transportation and distribution strategy would be no small task. They needed a third party logistics provider who was willing to acquire a deep understanding of the company's current distribution operations and infrastructure and could provide flexible, cost efficient solutions."We could not risk the cost and customer implications of a blind change in our logistics strategy. Penske Logistics' willingness to understand every nut and bolt of our distribution processes was crucial to a successful change in our operations." Rich Cirulli, Vice President of Logistics, Knoll, Inc.Once selected, Penske Logistics met these initial requirements and hit the ground running. The first step was to conduct an in-depth analysis of Knoll's current operations. For nearly 14 months, Penske closely monitored product volume, transportation rates, delivery points and freight combinations. During this time, the unstable economy allowed Penske to acquire data representing the entire spectrum of productivity, while enabling Penske to theorize logistics strategies in a variety of economic conditions.Penske's next step was to help Knoll develop benchmarks to allow for the measurement. Using a combination of Knoll and Penske financial specialists, the team analyzed previous financial statements to determine areas of high costs. Two key areas for cost improvement quickly surfaced—transportation and labor. These areas would be closely measured throughout the change in Knoll's transportation and distribution strategy.Maximizing Knoll's Existing InfrastructureWith a solid understanding of current operations and an established set of benchmarks, Penske determined that the most cost-effective strategy for consolidating Knoll's customer shipments was a two-pronged solution involving Penske's experienced Distribution Center and Transportation Management teams:• Establish two centrally located mixing centers to consolidate products from Knoll's four manufacturing plantsRe-engineer warehouse infrastructure and load planning processesInitially, Penske recommended establishing two new mixing centers in Holland, Mich., and Allentown, Pa. As planning progressed, productivity at Knoll's manufacturing plant in East Greenville, Pa., reached an all-time low. This provided a unique opportunity for Penske. Rather than have Knoll spend an estimated $1 million leasing a new facility in Allentown, Penske could convert the existing facility in East Greenv川e from an under-utilized warehouse to one of the proposed mixing centers.During the East Greenvill。