The challenge

Meeting High Demands With Rising Costs

Walmart distributors have high standards to meet, and keeping up with these ever-increasing demands while meeting production goals is a struggle. 

Our client proactively implemented a new supply chain execution software suite to meet these demands. However, as they were getting up to speed, operating costs began to rise. They encountered difficulties meeting multiple strategic initiatives and needed more internal resources to tie them all together. 

On top of it all, new equipment and technology investments were necessary to meet higher demands but were slow to show returns. Recognizing the need for additional expertise, they made the strategic decision to reach out to the Joshua Tree Group.

The solution

Strategic Solutions for Operational Excellence

With a broad spectrum of problems to solve, the JTG team honed in on network-wide strategies to build a foundation to support these changes. This included JTG’s signature AMP Performance Management program.

This distributor made transformational changes through this holistic strategy, along with client team training, facility expansion planning, and support for Walmart’s sustainability 360 initiative. This included:

  • Training and empowering their internal team to achieve results and take ownership of the program.

  • Introducing a performance-driven workforce motivation program, leveraging human motivation theory, engineering techniques, marketing strategies, and statistically valid incentives for individuals and teams.

  • Educating managers on change management, associate coaching, and performance management, enhancing their leadership skills.

  • Installing the ProRep LMS swiftly and integrating it with their time and attendance system to support AMP pay-for-performance reporting.

  • Improving scheduling, layout, and procedures, including revamping new automation workflows.

  • Re-profiling and balancing space allocations across distribution functions for optimal efficiency.

These tailored strategies ensured sustainable growth and measurable efficiency improvements for their operations.


The results

Achieving Record-Breaking Efficiency and Cost Savings

It didn’t take long to see the results. In just six weeks, costs dropped weekly, and the program was cash-flow positive by week 14.

Qualitative benefits shined, too. Associates felt energized and appreciated the opportunity to perform without restrictions and be recognized objectively for their work. Managers now use new tools daily, leading to significant improvements. 

Key achievements include:

  • Breaking three consecutive throughput records on automation equipment and in manual operations.

  • Cutting overtime costs by 21% and minimizing reliance on temporary staff.

  • Reducing employee turnover and easing absenteeism by 17%.

  • Avoiding a multi-million dollar shipping sorter upgrade.

  • Measuring alternative operating approaches and modifying WMS configurations before the go-live date.

  • Consolidating space, enabling the elimination of a leased facility.

  • Reducing facility operating hours and costs and deferring powered equipment leases.

Most recently, management created a culture team from other functions to explore expanding AMP concepts throughout the organization.

Working with JTG brought foundational organizational change for this distribution company, leading to long-term success and fostering a culture of continuous improvement.