Lever
A Priya Success Story

Company Overview
Lever-Is is the Istanbul, Turkey subsidiary of the worldwide Lever family of companies. Lever manufactures and distributes consumer soap and cleaner products all over the world. Lever operates dozens of factories, warehouses, and co-pack operations in Europe and Asia in order to insure a steady supply and smooth flow of products to consumers in these regions.

The Problem
Lever struggled with rising plant and labor costs as a result of population density increases and rising per capita incomes among the skilled work force. Real labor costs are increasing in the double digits annually, and land prices in Istanbul are equivalent to those in Southern California. Transportation and distribution infrastructures like LTL Trucking and Freight Forwarding do not exist. Lever sought to keep prices down in order to compete effectively, introduce new products, and expand into new markets.

The Motek Solution
Motek conducted an on-site study of Lever's production and distribution facilities and the feasibility of developing, or enhancing, automated systems to augment Lever's IBM AS/400 environment. The study focused on RF/DC manufacturing and warehouse automation systems feasibility, European RF regulatory requirements, Information Systems requirements, and overseas distribution and transportation problems. Following a comprehensive analysis by Motek operations and technical consultants, new operating procedures were devised to eliminate many satellite warehouse operations, minimize multiple product handling, dramatically reduce freight costs, and more effectively integrate data collection systems between production and distribution.

Operational changes recommended from a preliminary report were put into place before Motek consultants left the country. Changes in route delivery scheduling resulted in an estimated freight cost savings of over $1.5 million annually. Eliminating most satellite warehouse operations by maximizing space utilization at central warehouse sites, reducing labor costs resulting from multiple handling of product, and modifying warehouse power equipment use to more efficiently replenish pick slots and stage orders on shipping docks, resulted in additional annual savings of $750,000. RF/DC systems are expected to save an estimated $100,000 annually, but due to higher costs for hardware and software overseas, this option is still under consideration.