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Building the operational tooling enabling a 6x customer growth during Covid-19
Challenge
HelloFresh faced significant logistical challenges with maintaining two separate distribution centres in The Netherlands, catering to Belgium, Netherlands, Luxembourg, and France. Each centre produced boxes for Dutch and French-speaking regions with unique production lines and brands.
Additionally, production inefficiencies were identified, particularly with a taping machine that slowed down the process due to frequent adjustments for varying box sizes.
Finally, manual data errors in recipe and ingredient mapping led to costly mistakes and impacted customer satisfaction.
Solution
To address these challenges, a comprehensive plan was implemented to merge the two distribution centres into a single, optimized facility. Our team played a critical role by standardizing all data processes to ensure a smooth transition.
A dynamic production sequence assignment process was developed and implemented to eliminate frequent taping machine adjustments, significantly boosting production speed.
Additionally, we created a validation tool for the Production team to automate the reading, validating, and writing of source files, catching errors early and preventing costly mistakes.
Outcome
The consolidation of the distribution centres resulted in an annual cost saving of 9.8 million euros.
The new dynamic production process increased production speed by 30%, enhancing overall efficiency.
The implementation of the validation tool allowed the early detection of manual data errors, preventing damages and compensation costs amounting to over 400,000 euros and ensuring there was no customer impact. Our tool now validates and pushes over 26 business-critical source files, streamlining operations and reducing the risk of future errors.
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