TV Gadgetry TV Gadgetry (TVG) - a distributor of inexpensive kitchen tools and small appliances that are promoted on late-night infomercials-is facing challenges in its DC operations. Compared to the previous month, both the numbers of orders and customer complaints regarding service quality have increased dramatically in September. The company's manual picking systems and paper-based order management methods seem to be affecting performance, as is the heavy labor turnover occurring in the DC. Dylan Larking, the company's vice president of logistics is determined to uncover the source of these complaints. He asks his intern, Connor McDavis, to collect data and evaluate a variety of KPIs. McDavis jumps on the task and captures the information needed to evaluate order fill rate, fulfillment accuracy, invoice accuracy, and on-time dispatch. These metrics, McDavis believes, will help him identify the real problems so that changes can be made. His effort generates the following data: After thanking McDavis for the collecting the data, Larking asks the intern to do three things: (a) Calculate relevant distribution KPIs; (b) Compare the results to the TVG fulfillment goals; and (c) Identify the major problem areas and potential solutions. "Get busy with this," says Larking. "I want you to investigate the situation and report back to me on Monday." CASE QUESTIONS 1. Help McDavis with the analysis by calculating KPIs for: (a) Unit fill rate; (b) Fulfillment accuracy; (c) Document accuracy; (d) On-time dispatch; and (e) Productivity. 2. Compare your KPIs to the following TVG goals and comment on the problem areas: After thanking McDavis for the collecting the data, Larking asks the intern to do three things: (a) Calculate relevant distribution KPIs; (b) Compare the results to the TVG fulfillment goals; and (c) Identify the major problem areas and potential solutions. "Get busy with this," says Larking. "I want you to investigate the situation and report back to me on Monday." CASE QUESTIONS 1. Help McDavis with the analysis by calculating KPIs for: (a) Unit fill rate; (b) Fulfillment accuracy; (c) Document accuracy; (d) On-time dispatch; and (e) Productivity. 2. Compare your KPIs to the following TVG goals and comment on the problem areas: 3. Based on your KPI calculations, what is the perfect order index for TVG? 4. What actions should TVG management take to address the problems that you identified? 5. What benefits could TVG gain by adopting a warehouse management system? TV Gadgetry TV Gadgetry (TVG) - a distributor of inexpensive kitchen tools and small appliances that are promoted on late-night infomercials-is facing challenges in its DC operations. Compared to the previous month, both the numbers of orders and customer complaints regarding service quality have increased dramatically in September. The company's manual picking systems and paper-based order management methods seem to be affecting performance, as is the heavy labor turnover occurring in the DC. Dylan Larking, the company's vice president of logistics is determined to uncover the source of these complaints. He asks his intern, Connor McDavis, to collect data and evaluate a variety of KPIs. McDavis jumps on the task and captures the information needed to evaluate order fill rate, fulfillment accuracy, invoice accuracy, and on-time dispatch. These metrics, McDavis believes, will help him identify the real problems so that changes can be made. His effort generates the following data: After thanking McDavis for the collecting the data, Larking asks the intern to do three things: (a) Calculate relevant distribution KPIs; (b) Compare the results to the TVG fulfillment goals; and (c) Identify the major problem areas and potential solutions. "Get busy with this," says Larking. "I want you to investigate the situation and report back to me on Monday." CASE QUESTIONS 1. Help McDavis with the analysis by calculating KPIs for: (a) Unit fill rate; (b) Fulfillment accuracy; (c) Document accuracy; (d) On-time dispatch; and (e) Productivity. 2. Compare your KPIs to the following TVG goals and comment on the problem areas: After thanking McDavis for the collecting the data, Larking asks the intern to do three things: (a) Calculate relevant distribution KPIs; (b) Compare the results to the TVG fulfillment goals; and (c) Identify the major problem areas and potential solutions. "Get busy with this," says Larking. "I want you to investigate the situation and report back to me on Monday." CASE QUESTIONS 1. Help McDavis with the analysis by calculating KPIs for: (a) Unit fill rate; (b) Fulfillment accuracy; (c) Document accuracy; (d) On-time dispatch; and (e) Productivity. 2. Compare your KPIs to the following TVG goals and comment on the problem areas: 3. Based on your KPI calculations, what is the perfect order index for TVG? 4. What actions should TVG management take to address the problems that you identified? 5. What benefits could TVG gain by adopting a warehouse management system
