Case Study|Food & Beverage

A major poultry producer turned its cold storage distribution center around by more than $4 million, lifting productivity over 57% and improving on-time shipping 46% by managing the operation against its true capacity instead of its history.

Major Poultry Producer, Cold Storage Distribution Center
Results at a Glance
$4.5M+
Annualized Savings
57%+
Productivity Improvement
46%
On-Time Shipping
Executive Brief

The distribution center was run on historical performance rather than true capacity, which masked waste and lost time while staff levels drifted out of sync with the volume actually handled. POWERS established the operation's real capacity, aligned labor to that level, upgraded planning, scheduling, and coordination, and coached front-line supervisors to run a proactive, performance-based culture. The result was a turnaround worth more than $4 million: over $4.5 million in annualized savings, productivity up more than 57%, on-time shipping up 46%, overtime cost down more than 76%, labor cost per case down 41%, and turnover cut in half.

Frontline Leadership · MOS · Supply Chain
The Situation

The distribution center was managed by its past, not its potential, so waste and lost time hid in plain sight while managers spent their days firefighting.

The business set out to grow market share and strengthen its competitive position through steady, incremental gains in service performance. The cold storage distribution center sat at the center of that ambition, but it was being managed on historical performance rather than on what the operation was truly capable of. Measuring against the past, rather than against real capacity, quietly masked waste and lost time that never showed up in the numbers leadership relied on.

Underneath that, the structure of the operation was out of alignment. Staff levels did not match the volume actually being handled. Transportation, logistics, and warehouse inventory functions were uncoordinated or running at unacceptable levels. There were no key performance metrics and no clearly defined warehouse functions across receiving, stowing, picking, loading, and inventory accuracy. Front-line managers were consumed by firefighting and held to expectations far below their real capability, and the company lacked the information it needed to make decisions, forecast, execute, or evaluate.

What leadership needed was not a one-time fix but a management operating system: a way to know the operation’s true capacity, staff to it, coordinate the work across functions, and give supervisors the metrics, processes, and discipline to run a proactive, performance-based culture every day rather than react to whatever broke next.

The Diagnosis

Six structural gaps producing the same outcome from six directions.

Managed by history, not by capacity

The business was run on historical performance rather than true capacity. Measuring against the past instead of real potential masked waste and lost time, so the operation never saw what it was actually losing.

Staffing out of sync with volume

Staff levels did not match the volume the distribution center actually handled. Labor cost and job requirements were misaligned, leaving the operation both over and under resourced against real demand.

Managers stuck firefighting

Front-line managers were consumed by firefighting and held to expectations far below their real capability. Their attention went to reacting rather than running the operation, and their potential was left untapped.

Functions running uncoordinated

Transportation, logistics, and warehouse inventory functions were uncoordinated or operating at unacceptable levels. Without coordination across the organization, work fell out of step and performance suffered.

No metrics, no defined warehouse functions

There were no key performance metrics and no clearly defined warehouse departments, functions, or processes across receiving, stowing, picking, loading, and inventory accuracy. Without definition or measurement, no one could see or control how the work actually ran.

No system for a performance culture

There were no management processes, discipline, or skills to run a proactive, performance-based culture. The operation could not sustain improvement because nothing existed to install and hold it.

What POWERS Did

Set the operation's true capacity and built the discipline to run to it every shift.

POWERS started by establishing what the business was actually capable of, determining the right capacities so the distribution center could be managed against that level rather than its history. From there, it sized labor to the work, determining the number of workers needed to support the volume handled and aligning labor cost with real job requirements. Planning, scheduling, and coordinating processes were upgraded across the organization so transportation, logistics, and warehouse inventory functions worked in step instead of in isolation.

In parallel, POWERS worked directly with front-line supervisors to implement the behaviors needed to execute the vision, teaching them how to identify and eliminate the vital operating problems that drove waste and lost time. Inefficient processes were stripped out, and the management operating system, metrics, and clearly defined warehouse functions were put in place across receiving, stowing, picking, loading, and inventory accuracy.

Together, these changes replaced constant firefighting with a proactive, self-sustaining, performance-based culture. The operation gained the information it needed to decide, forecast, execute, and evaluate, and supervisors ran the work to true capacity. The cumulative effect was a turnaround worth more than $4 million, built on cost control and productivity rather than added capital or headcount.

The Full Result

Six measurable gains, all earned by managing to true capacity rather than adding capital or headcount.

$4.5M+
Annualized Savings

More than $4.5 million in annualized savings from cost control and productivity, the core of a turnaround worth over $4 million at the cold storage distribution center.

57%+
Productivity Improvement

Productivity rose more than 57% once the operation was managed against its true capacity rather than its historical performance.

46%
On-Time Shipping

On-time shipping improved 46% as planning, scheduling, and coordination tightened across the distribution center.

76%+
Overtime Cost Reduction

Overtime costs fell more than 76% as staffing aligned to actual volume and firefighting gave way to planning.

41%
Labor Cost per Case

Production and labor cost per case fell 41% as utilization and throughput rose against true capacity.

50%
Turnover Reduction

Attrition and employee turnover dropped 50% as a proactive, performance-based culture replaced constant firefighting.

Ready to builddisciplined execution in your operation?

Every POWERS engagement starts with our intensive Discovery Process. We work with everyone on your team, identify the gaps in the five disciplines that hold execution back, and build the partnership that closes them. The results stay built long after we’re gone.

Start a Conversation