Monday, March 3 1:55 PM - 2:35 PM
Beyond the Packaging Room
Baking is largely a low margin industry. Untold sums of money have been and continue to be spent to make bakeries operate at peak efficiency, to squeeze every cent of cost out of making the products. Curious then, that many bakeries choose to squander these efforts away after the products have been made. A continuum of small, oftentimes hidden ‘wastes’ in order filling and shipping, will add up to very significant amounts of profits being lost that can easily be avoided through application of lean six sigma principles.
And while very significant automation has been implemented in much of the production area of many a bakery, it is curious to find archaic work methods still dominate order fulfillment and shipping areas of a vast majority of the industry. The use pen and paper, basically unchanged since the age of the drawn carriage, not only reduces visibility of what is going on in shipping, increases the likelihood of mistakes and reduces customer satisfaction. Modern distribution support technology has come a long way and with proper use it will improve order filling accuracy, and therefore customer satisfaction, but also reduce waste and provide real time status improving the (much needed) transparency of that side of the business.
How significant profits are being ‘lost’ AFTER the products have been made, in the shipping and distribution area of the business.
A way of calculating how much profits are being lost
How applying lean six sigma principles and technology in shipping can not only significantly recover these lost profits, but increase customer satisfaction at the same time.
Marc Braun, PCData