Industry Insight

IMPROVING DISTRIBUTION OPERATIONS
A pilot program proves successful

Chuck Blevins & Associates recently worked with The Spokesman-Review to revamp its method for distribution. The Spokesman-Review is in the final stages of a packaging center expansion. As part of CBAssociates' planning for this expansion, the entire operation, from the press through distribution, was studied. A major part of this work was to establish a pilot program that included a "Beta site" for testing the revised distribution center concept. The Beta site has been operational for six months and has shown significant improvement over the previous system.

Several years previous, The Spokesman-Review created distribution centers throughout the city. While these centers served their purpose, they were created at a time when there was little experience in the industry to draw from. As the paper gained experience, they realized the system was not an effective approach to serve their customers, maintain good copy control and to distribute in the most cost-effective manner.

CBAssociates worked with The Spokesman-Review to determine the most effective distribution method for their particular market and labor market situation. The entire distribution process was analyzed. Analysis of critical aspects included:

Current and projected market area
Optimum number and size for DCs
Location of existing DCs and potential locations for future DC's
Various factors relating to the existing labor market
Methods for loading, unloading and staging the product
Procedures to maintain good copy control and to minimize lost copies
Delivery time from packaging to the final customer

To set up the pilot program CBAssociates developed detailed task lists of all functions required for implementation, schedules, staffing, manifests, operating procedures, process flow and design layouts for the Beta site. In addition, CBAssociates helped the client determine how management and carriers could manage the DC operations to maintain good copy control.

Decision making criteria were established to evaluate the success of the pilot program. These criteria included developing a base operating cost that could be compared to the operating cost for the pilot DC.

Bob Thomas stated "conversion to the new system went more smoothly than expected with very few objections from the carriers. The new system implemented tighter control over bundle pickup by the carriers in an effort to reduce reorders. While some problems were anticipated in implementing this control, it actually went quite smoothly."

Bob further stated that "based on the success of the Beta site, the Circulation and Production staffs are currently preparing a proposal for management to expand the program to the next step." This would include implementing the new system throughout the entire distribution area.

We would like to share our knowledge of product and operations planning, production and distribution analysis, process and equipment analysis, master planning, and design development. Our long-term experience in the newspaper industry coupled with recent projects focused on cost-savings initiatives could provide the solutions you seek. To learn more about our services, qualifications, and published articles, please contact Janelle Piccola at 303-431-5909 or visit us at www.chuckblevins.com.

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