The problem
Legacy processes – created by a third-party logistics team – were having a significant impact on Ricoh’s field servicing performance and operational efficiency. Materials distribution and replenishment was slow and unreliable, excess stock and a lack of inventory control was impacting profitability, and the field service management team was under unnecessary stress trying to resolve recurring issues.Furthermore, costly warehousing sheds and a heavy reliance on next-flight services were adding further expenses and overheads. Quite simply, Ricoh were having to rely on systems and processes that didn’t meet their needs or add any value to them or their customers.
The solution
Droppoint materials orchestration solution was perfect forRicoh’s needs. Our team worked closely with the client to tailor a solution to reduce excess inventory, lower costs, and improve efficiency, productivity, and visibility end-to-end.Droppoint’s Inventory and Transport solutions, supported by our advanced tech solutions, was a game-changer.
• More than 100 Droppoint sites for just-in-time(JIT) delivery in major capital cities.
• Roll-up of costly inventory storage sites into~25 forward stocking locations (FSLs).
• Fully integrated in-night transportation with same day air freight and next-day road freight.
• Transparent and real-time reporting of transactions.
• 2-hour crosstown deliveries to Droppoint material collection/distribution sites.
• User-friendly mobile app built for field technician efficiency.
• Systematic returns solution.
• Full integration with warehouse management and dispatch process systems.
A partnership growing stronger
Droppoint materials orchestration solution (MOS) has improved overall business performance and reduced in-field issues for the Ricoh team. Despite the ongoing logistics challenges, the relationship has only grown stronger over time.The value of the partnership was particularly demonstrated during the COVID-19 pandemic, a time when Ricoh faced unprecedented logistical challenges. Droppoint’s agile thinking and solutions-focussed approach allowed Ricoh to rapidly adapt to their customer evolved needs
Key results
• Estimated 22,740 hrs or $2.7M savings per year
• Increased productivity for the FST/FSE
• Significant savings as a result of reduced travel times
• Improved SLA compliance
• Improvement in CSAT and SLA compliance
• Improved visibility of moving parts end-to-end
