Freight Cost Reduction Project

Abstract

Shipping products from the Caribbean have a limited amount of freight options in comparison with other geographical regions. For HPE Puerto Rico, one of the main business goals for FY23 is to establish initiatives that can help reduce freight costs. This task was achieved using the DMAIC methodology and the use of lean six sigma tools, like the failure mode and effect analysis. By using these tools process governance was established, the projected average cost per pound will be reduced by 33% and the shipping process was improved. The implementation of all these initiatives resulted in a potential cost savings of $180K for FY23 and other process improvements. Key Terms ⎯ DMAIC, Freight cost reduction, Lean Six Sigma, Outbound.