Distributor Recovers from Costly Tech Shift with $500K in Identified Gains
Industry: Wholesale Distribution
Overview
A major North American distributor of food, alcohol, and tobacco in the Puerto Rican market—handling over $500M USD in annual throughput—engaged LaborAI to assess and improve operational performance following a platform transition in late 2023.
The Challenge
- Significant drop in productivity following the September 2023 technology platform changeover.
- Difficulty quantifying the exact impact of the new technology on operations.
- Lack of clear insights into how system configuration limited productivity improvements.
- Challenges in identifying specific areas requiring targeted operational focus for recovery.
- Uncertainty around the true cost of reduced productivity on overall labor expenses.
- Need for a fast, accurate assessment to guide corrective actions.
The Approach
- Rapid Operational Review
LaborAI completed a full operational review in just a few days, enabling a swift understanding of the situation without lengthy consulting delays. - Before-and-After Productivity Analysis
Using performance data from both before and after the technology changeover, LaborAI quantified the productivity decline attributable to the new system. - Root Cause Identification
LaborAI pinpointed specific limitations and misconfigurations in the platform that were driving inefficiencies. - Targeted Improvement Roadmap
Beyond identifying losses, LaborAI highlighted actionable areas for improvement. The company’s internal team used these insights to actively pursue recovery and drive additional savings.
LaborAI helped us quantify the productivity impact of our new system quickly and clearly. More importantly, it showed us exactly where to focus our efforts to recover significant labor savings.
The Outcome
- Productivity Loss Quantified
Verified a double-digit reduction in labor efficiency due to system change. - $250K+ Cost Impact Identified
Estimated labor cost losses tied directly to the drop in productivity. - Actionable Insights for Recovery
Pinpointed specific operational focus areas for improvement. - $500K in Additional Savings
Revealed further productivity gains now being captured by the team.
