Food & Beverage

The Situation

Our client was managing a diverse and complex supply chain, operating 16 distribution centers in multiple regions across the nation. Their asset management was totally decentralized; there were vast differences in the client’s asset types and management methods and their processes and tools were not standardized. Between frequent downtime and excessive sky-high maintenance costs, the managers could not afford for the supply chain to be interrupted by equipment issues. Unfortunately, imbalanced equipment pools, incorrect applications, and improper management were handicapping the operations. The managers generally knew the equipment was causing issues, but no one had the time to analyze those issues or develop solutions.

The Solution

Our team performed an in-depth analysis of their entire process, including extensive process studies, application reviews, and equipment utilization reviews. The HubNetic team implemented our software to standardize tools, processes, and data collection to foster visibility and create benchmarking. To create benchmarks, the client’s data was compared to similar data represented in the HubNetic database of over 100,000 assets. The equipment was judged on its suitability for the applications and environment. The equipment pools were reviewed for workload balance and efficiency. Lease and maintenance contracts were evaluated for economy and effectiveness. Ultimately, the data generated clear productivity measures and a costs-per-operating-hour KPI for all equipment.

Once plans and benchmarks were in place, HubNetic was able to recommend changes. In the equipment fleet, more efficient assets were spec’d for future acquisition, and a replacement schedule was drafted. Also, new leasing and maintenance contracts were developed to better fit the client’s needs. Improved procedures were instated with service vendors and equipment operators to ensure that asset information would be kept current going forward. All information on costing and utilization for the equipment was captured in the HubNetic system and reported out via an online dashboard and tools.

The Result

Today, the client has contemporary and comprehensive information regarding their assets, cost, and behaviors. Through web-based reporting, the client has access to an user-friendly database with information including:

Using HubNetic, the client can view their information and metrics from the corporate level to the location level, all the way down to the individual asset. In addition, HubNetic provided a standardized work order process to their team of in-house service technicians.

Originally, the client had underestimated their baseline costs by almost 20%. Once the “cost per operating hour” KPI was in place, and the HubNetic system was fully implemented, overall costs declined and the KPI itself improved by almost 30%.

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