Retail

The Situation

When a major retailer with over a thousand locations came to HubNetic with an issue regarding their material handling program, we knew that they needed a holistic solution. With so many stores and facilities to account for, they couldn’t afford to have valuable information get lost in the shuffle. They needed to slash costs, reduce downtime, and pare down the number of vendors that they were managing. After reviewing their existing program and restructuring they way that they managed material handling, we helped get them on the fast track for success.

The Situation

When HubNetic was approached by a major retailer regarding their material handling practices, processes, and repair expenses at approximately 1,000 stores, our team knew that they had to act fast. They already had a system that centrally managed their fleet, but it wasn’t as effective as they needed it to be: between significant downtime and maintenance expenses, they were running into serious issues. Replacement parts were driving costs through the roof; mechanisms for vendor accountability were not in place, and OEM’s were not providing adequate solutions.

The Solution

After meeting with our client’s fleet team, HubNetic began our in-depth assessment process to better understand how they operate. We wanted to understand every nuance about their process and their long-term objectives. From there, we onboarded stores and assets into our customized software, leveraged the business intelligence to implement sustainable solutions, and established ironclad KPIs to measure their success.

Our work wasn’t done yet—after that, we worked to standardize their service provider labor rates, and implemented a comprehensive replacement parts program to make sure that their cost goals were met while maintaining uptime and quality. The parts program gave the customer multiple sources of supply to significantly reduce stock-outs, expedite delivery, and reduce costs.
They also needed to find a solution that consolidated their vendors, improve communication, and make their overall process more manageable. Our team helped them reduce the number of vendors that they worked with, digitized and enhanced communication for service events, and actively worked to improve response time and mean time to repair. The business intelligence from the software helped to identify exceptions and create new projects focused on cost savings, improving efficiency, and prolonging the life cycle of equipment.

The Result

Due to the success of this engagement, the customer rolled out the successful MHE process to all stores across North America. After the first year, the customer’s same-store expenses were down 26%. After fifteen months, expenses dropped by 30% and after two years, expenses dropped 35%. Today the client is actively working with HubNetic to clone the process with other types of equipment in their stores.

Due to the success of this engagement, the customer rolled out the successful MHE process to all stores across North America. After the first year, the customer’s same-store expenses were down 26%. After fifteen months, expenses dropped by 30% and after two years, expenses dropped 35%. Today the client is actively working with HubNetic to clone the process with other types of equipment in their stores.

Their steady increase in efficiency is characteristic of the custom-tailored service solutions we work to provide our clients. They knew that they had to change they way that they were managing their material handling fleet to achieve their goals and move the needle. In partnership with our team, we streamlined the way they operate, making their lives easier and their performance goals that much more attainable.

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