When you make important changes on a tight timetable but don’t get the results you expect right way, the transition period can be tough. That’s when the right proactive logistics partner can help you manage the change and improve the situation…like DSC Logistics did for Kellogg. 

When Kellogg completely replaced the legacy systems throughout their entire distribution network, the challenges of the systems changes were significant, requiring close attention to daily operating functions so that service levels remained seamless. And when they established a new K-manager structure to accommodate the major change going on in their organization, it took a while for the new K-managers to learn their new roles. When the improvement in productivity, service and communication that Kellogg expected didn’t happen right away, they called in DSC.

DSC’s solution was to form a cross-functional team called KIT (Kellogg Improvement Team). The first step in establishing the KIT team was to create a common mission to serve the customer. The KIT team, made up of key Logistics Managers at the two Logistics Centers operated for Kellogg by DSC, met frequently, constructing an action register format to identify key improvement opportunities. The team reported to Kellogg during monthly leadership meetings and provided input to a Kellogg systems team.

More consistent communication was established by the KIT team, and best practice consistency was established across the two sites. Improved inventory control resulted in reduced costs to Kellogg’s supply chain. Inventory levels were reduced and casefill/orderfill service levels to their customers were improved. The KIT team’s action matrix provided ongoing updates as to the progress of the various improvement objectives and was expanded beyond the original scope to include multiple cost reduction objectives. Each objective remained on the list until completed. Kellogg credited DSC with being the most supportive provider through their system transition.

Kellogg considered DSC’s KIT team efforts to be unique to the rest of the network. As a result, DSC definitely had credibility as a solution-driven resource to the Kellogg network. No surprise there. It’s our mission: to achieve customer business goals through the management of change and information.