perform repetitive tasks over a network. It follows speci c instructions to imitate human behavior but is faster and more accurate.) IMPROVED PICKING, PACKING, SHIPPING When working with ve orders with the same SKU, for instance, Kenvue can combine them, putting the orders together because they’re going to the same region. This enables employees to pick the items logically. “We were able to use technology to help organize the orders and create a much smoother customer receiving experience,” Leonard says. Before this change, a customer might receive multiple different Tylenol bottles on different pallets throughout the truck. As a result, it took them longer to nd, count, and properly receive the products. In a pilot with the new system, two of Kenvue’s largest customers saw up to a 40% reduction in unloading costs, as well as an improvement in reported errors. By creating a cleaner, more organized order, the picking, packing, and shipping processes are also more ef cient. These changes reduced Kenvue’s loading time by about 20%.
The new system has also cut overages, shortages and damages (OS&D) about in half. Previously, customers might think they hadn’t received some of the products they’d ordered. By more effectively organizing each load so the same SKU codes are together on the truck, Kenvue’s customers accelerate unloading time and can better assess the goods they’ve received. The enhanced Pick Logic system was built in collaboration with Kenvue’s third-party logistics partner, who runs warehouse operations. The 3PL changed its picking sequence, or the logic within its system, from a “most ef cient path” to an “end-to-end customer experience path” to streamline the customers’ receiving operation. TIMELY INFORMATION SHARING IS THE KEY For these tools to work effectively, Kenvue and its customers need to share information. With a timely exchange of information, Kenvue can understand its customers’ inventory levels and where they want to receive products, among other information. “It all starts with that data,” Leonard notes.
For example, an order from a Chicago location would probably be lled through the distribution center located in the Midwest. Another step has been using technology to automate and receive orders more ef ciently. Previously, Kenvue might receive a customer order, and manually hold it for an employee to review, checking that it contained the right price and quantity. Also, purchase orders could come from different buyers within the same company. Placing multiple purchase orders, typically for smaller quantities, in different areas within a truck often led to inef ciencies in receiving and increased claims for overages, shortages, and damages. Now, Kenvue has automated the intake and collation of these orders using EDI software and other Bot technology to optimize the customer logistics analytic review. (Bot technology refers to automated software applications that
CASEBOOK STUDY A View Into Kenvue CHALLENGES
After spinning o from Johnson & Johnson, Kenvue needed to establish a successful and eective supply chain as an independent company that’s also the world’s largest pure-play consumer health company by revenue. SOLUTIONS Leveraging data and artificial intelligence, while also partnering more strategically with its retail customers to drive eciency.
RESULTS Reducing unloading times,
overages, damages, and shortages, while boosting on-time arrivals at customers’ warehouses. NEXT STEPS Continuing to test and implement The Perfect Store approach with customers around the world.
Kenvue’s Perfect Store solution taps into AI to help retail customers drive better store execution. Analyzing and sharing a store’s daily sales data can identify irregularities and prevent out of stocks.
206 Inbound Logistics • July 2024
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