Don’t sweat the small stuff…focus on what is important and don’t let the insignificant things bother you.
Oversee Materials Management and Logistics team with responsibilities for maintaining inventory for Safelite’s Supply Chain network of 2 distribution centers, 87 warehouses and nearly 350 stores, supporting both retail and wholesale operations, while improving On Shelf Availability and reducing adverse buys.
Spending time with his family. He likes golf and other fitness activities such as running and walking. In addition Paul has competed in the London Triathlon as well as involvement in the Susan G, Komen Race for the Cure. Paul is a Safelite Wall of Fame Winner.
Paul is being nominated under the criteria of moving a service process forward in a significant way. His leadership in lowering Safelite’s adverse buyouts has already added over $9M in profit over 2009 levels and set Safelite on a course to improve internal and external customer delight through faster time to service and higher quality of product. Each week the business is updated with our performance and we can point to one person for his tireless work on this front: Paul Groves.
At Safelite we have always known that our supply chain was one of our strengths but for many years the primary focus of this strength was to control costs. Today it is different. In order to tap into the investments made in Project Vistas and support our growth aspirations we needed a way to leverage this strength into a way to grow profit through increased customer delight.
Leveraging Good Practice
In 2008 Safelite purchased Diamond Glass and a good practice of Diamond was in their delivery model where nearly every part was delivered next day from their hub in Kingston, Pennsylvania across the country. Safelite knew this model made sense not only as a way to be efficient but to use the framework to get parts closer to our warehouse facilities and therefore our external customers.
In just a few years with the investments in local warehouses (bigger facilities, more inventory) throughout the country, Paul and his core team (Dave Casole and Dave Fultz), took to replicating and improving the model used by Diamond and created hubs (regional warehouses) which would service several “spokes” (markets). Pilot hub and spoke models began in Scranton, Pennsylvania; Enfield, North Carolina and Taunton, Massachusetts.
The real momentum started in the second half of 2010 when the model grew to 14 hubs in the US covering 75% of Safelite’s part needs.
There was an expectation that increased investment in inventory and more frequent warehouse runs would increase per unit cost and make the hub and spoke model too costly but instead the reverse happened. We have seen the core “hub” warehouse group’s fixed costs drop by 10% and variable costs stay virtually flat. Because the glass was getting out of the warehouse faster we saw less breakage and since we could supply our own service centers versus doing a buyout, the overall cost of handling the product went down.
Paul’s Framework for Improvement
• Increase Inventory
• Hub & Spoke Model
• Market Visits to target buyout performance
• Improved Reporting
• Stocking OEM Dealer Parts
Safelite’s Chief Operations Officer and Senior Vice-President, Rich Harrison, had this to say about the strategic impact of Paul’s efforts: “The transformation of our Supply Chain, driven by a strategic paradigm shift: from cost to service, has resulted in Safelite AutoGlass being able to convert and delight more customers. It has changed the rules of the game and has allowed us to create a competitive advantage in the US market.”