Warehouse Damage Reduction Presented by Ben Overfield March

Warehouse Damage Reduction Presented by Ben Overfield March 2018 1

Define The Process Finished production is hauled away from the production lines and then loaded onto trailers, which are then taken to a distribution center. The distribution center unloads the product for storage and then reloads on over-theroad carrier trailers once customers request our product. Scope – Our project will focus specifically on reducing pallet & product damage. 2

Define Customer Requirements Who is the customer? Our team determined that we had internal and external customers. Both customers require that all boxes of product should arrive undamaged, and packed on unbroken pallets. Two types of Customers Berry Customers & AW Injection Print Room Using a matrix system , we ranked the Process Steps. (a)Loading product onto trailers (b) placing product in staging areas were the highest contributing factors to warehouse damage. 3

Measure How can we track warehouse damage? Berry customer complaints are tracked and recorded each month as CIO’s and are charged accordingly to the at-fault-department. 2017 AVG. Monthly CIO Cost was over $8600. 00 4

Analyze Trends Our team analyzed huge amounts of data on all the CIO’s recorded for damaged product in 2016 and found that most of the damage was attributed to crushed boxes and several types of damaged pallets 5 .

Analyze 6

Analyze The Root Cause • Combination of human error & equipment 7

Improvement Options Our team found 2 different products that could reduce warehouse damage. We tested each of these products. *These devices were designed to attach to forklifts. They keep product and pallets from coming in contact with the radius on the back of the forks or the mast. On the PPS-2 the lower bar is designed to cushion the force exerted on a pallet when being loaded. The lower section will pivot upwards during retraction from a rack or trailer 8

Improve Testing Phase The original Product Protector was also tested and is very durable and performed very well on most of the processes in the Evansville facility. It allowed the operator to quickly change the width of their forks and pivoted upward when the lift was backing out of trailers. - This version however caused damage to unpalletized bundled product when the operator tried to pick up the product at an angle. The corners would also get snagged in the drive-in racking systems as operators backed out. 9

Improve Testing Phase PPS 2 - Wide Product Protector The PPS 2 – Wide is very easy to install and durable. This version performed very well on all the processes in the Evansville facility. Operators mentioned they didn’t notice it was even on their trucks. The PPS 2 didn’t cause any damage to any of our product and was rack friendly. During the initial testing we immediately saw beneficial results. Product that easily got damaged was being loaded by inexperienced employees with no pitfalls. Employee Comments “Employee drove the truck and said he thought it was beneficial and prevented him from crushing skids and damaging product. The only negative was it clanked in the racks when the mast was removed, which was a bit of a distraction, but not a deal breaker. In short, we thought he'd give the protector 2 thumbs up. " “Employee said its the first time he unloaded a material trailer that didn't require sweeping up broken boards afterwards. " “Employee noted that when loading one customer’s order, no skids were cracked or damaged" “Employee said that he noticed the trailers are cleaner after a truck unload" 10

Improve Testing Phase We installed and tested the attachments on various equipment and in all aspects of our business operations in Evansville. • Handling corrugate supplies (boxes) • Handling gaylords of resin • Palletized product / un-palletized bundled product • Various Racking systems (Static, push-back, drive-in) • Various crated items / loose supplies • Various dock plates at different pitches 11

Improve Using this analysis, we determined that the PPS-2 Product Protector would reduce most of the contributing factors causing warehouse damage 12

Improve Implementation November 2017 • The PPS-2 Wide product protectors were installed on the forklift fleet (over 65 trucks) at the Evansville facilities. • A tutorial was given to the operators to demonstrate the purpose and benefits of the product protectors 13

Control Estimated Savings In 2017 total CIO costs were over $94, 000, which attributed to a noticeable percentage of net sales. We hope this project will reduce CIO costs to much less of our annual net sales! We estimate at least $70, 000 in savings. 14

Control Tracking Month Nov Dec 2016 CIO Damage $ + 2, 600 $ +1, 892. 75 2017 CIO Damage almost $4, 000 2018 CIO DATA Month Jan Feb Mar 2017 CIO Damage $ +31, 500 $ +11, 000 $ +2, 609 2018 CIO Damage $ +4, 000 $ +400 $ +3, 200 2018 Project Savings YTD over $38, 000 A 77 % reduction in CIO dollars YTD 15

Summary In short this project has shown how thinking outside the box and challenging the process can be beneficial in numerous ways. We wish to thank Tekzone LLC and Product Protector for all the assistance during this trial period! 16