Distribution Centre Productivity and Work Standards Assessment Case Study

CLIENT: A US-based department store chain retailer

The challenge

Following completion of our value assessment, PwC Canada’s Retail Consulting Services supply chain team was engaged to review areas of improvement within the retailer’s direct-to-consumer and retail store distribution Centres.

Our approach

PwC Canada’s Retail Consulting Services Management worked with the retailer to:

• Perform detailed analysis of distribution Centre productivity reports
• Assess labor costs incurred in comparison to variations in seasonal demand
• Evaluate work standard development and updating process
• Perform a detailed review of time recording and supervisor approval process
• Identify tasks that lacked standards, ongoing monitoring and measurement

The result

• PwC Canada’s Retail Consulting Services team identified a number of areas where improvements in management oversight and discipline were required
• This and the development of new or updated standards were expected to lead to approximately millions of dollars in labor savings
• The client is currently implementing these recommendations