CASE STUDY: Spare parts management with Middleby Corporation
Middleby Corporation Uses TransLution™ Software to Manage Spare Parts for Appliances
The Middleby Corporation, a world leader in the development of advanced solutions for commercial, industrial and residential foodservice, selected TransLution™ Software to manage the spare parts section of their business. With a warehouse consisting of 20000 bins containing 15000 different stock codes and shipping 250 sales orders per day, Middleby required a system that could not only perform run-of-the mill warehouse management but be tailored to tackle their unique stock handling challenges and optimize labor usage. They selected TransLution and quickly recognized huge benefits.
“TransLution has transformed our business. Our return on investment for the cost of TransLution is less than one year, with remarkable benefits for Residential Appliances, Accounting, and Admin departments.”
Jim Kramer, Middleby representative, Australia
Labor Cost Cut in Half
TransLution was implemented across the whole spares warehouse, including receiving, put away, replenishment, picking, packing, stock take and cycle counts. TransLution worked with Middleby to develop a unique system which greatly reduced the amount of fetching and carrying done by operators. TransLution was configured to use totes in all processes. By tracking the contents of each tote, TransLution allows an operator to simply scan a tote and be directed in the most efficient way according to the operation they are performing.
Middleby’s picking process involves multiple pickers picking a single order into multiple totes, as well as a single picker picking for multiple orders. With TransLution guiding pickers at every step of the way, instructing them on which order to pick next, and which tote to pack, this complex picking process was simplified. This enabled Middleby to process the same number of orders with half the staff.
TransLution’s packing and checking process ensures that all totes for an order are married together before the items are packed into boxes. TransLution prints box labels and packing slips and integrates with the various shippers used by Middleby.
Because of the simplicity of the system, pickers and packers are interchangeable and staff can move between tasks depending on need.
TransLution provides management with a clear picture of the queue of work, allowing them to plainly see where staff can be best utilized. TransLution also tracks and reports on the time each operator spends performing a task, giving management an insight into each operator’s efficiency in each area. These reports assist Middleby in moving staff between tasks depending on where they are most needed and perform optimally.
All this has allowed Middleby to reduce their labor cost by 48%.
Same-day order fulfilment increased from 40% to 99%
By automating their picking and packing processes with TransLution, Middleby was able to increase their same-day order fulfilment rate from 40% to 99%, enabling them to guarantee to their customers that orders will be shipped on the same day as received. They were also able to extend their same-day order fulfilment guarantee 5 hours into the evening.
The number of calls to Customer Service has been reduced by 1/3 due to accurate stock availability on Middleby’s website, as well as their now near perfect on time delivery rate. Middleby had a penalty system in place where they provided a partial credit if the delivery was not within terms. Those credits are no longer significant.
Eliminated annual stock take
Middleby performs daily cycle counts using TransLution’s cycle count module. Cycle counts are so simple with TransLution that they can be performed by picking and packing operators once they are done with their daily tasks. By performing regular cycle counts, Middleby have satisfied their auditors and have been able to do away with annual stock takes, thus eliminating 5-7 days of downtime annually.
Jim Kramer at Middleby says: “TransLution has transformed our business. Our ROI for the cost of TransLution is less than one year”
About
Middleby
The Middleby Corporation is a world leader in three business segments: commercial cooking, industrial baking and processing and residential appliances. The company prides itself on consistently delivering new award-winning innovation to the marketplace. They are known for disrupting the industry with advanced innovation and new processes across all business platforms. These innovations deliver speed, labor reduction, energy savings and green operating benefits to their customers. To read more about Middleby visit https://middleby.com/
TransLution™ Software
TransLution™ Software was developed to assist manufacturing, warehousing and distribution companies to better manage their business processes and reduce cost of operation. The TransLution™ product is particularly focused on robust integration to customers’ existing ERP, accounting and stock management software for a wide range of transactions. TransLution™ is distributed in North America, Africa, Europe and Australasia.
