Streamlining order fulfilment through a DIFOT audit
Our client is an Australian manufacturer and importer/ distributor of building materials with revenue of $150m, operating out of six warehouses across the country and required a DIFOT audit.
Improving customer order fulfilment was identified as a key strategic business initiative. DIFOT measurements were crude and perceived to be inaccurate, limiting our client’s ability to identify and manage any such improvement activity.
Measurement and prioritisation
Prological completed this project into two workstreams:
1. DIFOT measurement
- Documentation of the customer service promise and understood by sales, customer service and warehouse departments
- Review of ERP and FMS system data and the application of DIFOT reporting logic
- Revision of DIFOT reporting logic to align to service promise.
2. DIFOT improvement
- Review and documentation of customer service and warehouse processes to identify all potential DIFOT fail points
- Quantification of failure root cause
- Key stakeholder workshop to identify and prioritise DIFOT improvement activity.
Defined targets and improvements
Prological demonstrated that previous DIFOT reports were significantly overstating our client’s performance. The new measurement was more in line with our client’s intuition, however the accuracy their system data continued to constrain the findings.
Prological provided a detailed and itemised roadmap that allowed our client to:
- clearly define their market promise in relation to customer expectations and our client’s service capability/cost
- improve the accuracy of reporting data by standardising system processes and applying detailed pass/fail logic to each order transaction
- define DIFOT targets and improve DIFOT performance with changes to operational process, systems and resource planning and the introduction of associated KPIs.