A company-producer of industrial goods asked us to structure the processes in its supply chain. The executive director wanted to implement the good managerial practices in all departments of the company. The employees worked according believes and “standards” from 30 years ago and did not want to change the status, nevertheless the company was losing.
We did an audit in supply chain and implemented procedures for planning, purchasing, logistics and warehouse. We extracted the specific know-how from the planner, who had to go in pension in two months, but who also persistently was refusing to share his knowledge and skills with the next colleague. We extracted the specifics related to the raw materials from the buyer, who was refusing to talk to anybody in the company. We structured the processes, added the missing technological parts in planning and taught the new colleagues (planner, buyer and supply chain manager) on the good manners of work.
By running tenders and negotiations we showed to the colleagues how to:
- Negotiate in their employer’s interest
- Seek and find options for savings
- Read the contracts and assert their positions
By implementing the procedures, we achieved:
- Global view in supply chain.
- Correct processes in all supply chain departments.
- Corporate behavior.
- Simplifying the work process and thus increasing the quality and speed in the daily work.
- Reduced waste due to cleared specifications and technology periods and processes.
The challengeA company, trading with excise goods, operating with tax, customs and public warehouse asked us to audit the warehouses. The owners were not happy from the warehouse space utilization and the employees’ qualification. The activities in the warehouse were reduced to inbound, picking and outbound, while the documents administration was in the hands of employees outside the warehouse.
The solutionWe visited the warehouses and interviewed all the employees whose obligations have something to do with the warehouse. We implemented clear rules and procedures, trained the staff with potential and released the rest workers. We set order and mechanisms for control against abuses. We built tight organization with rules valid for everyone. Together with the customer we arranged the goods and optimized the warehouse space.
The resultBy implementing the rules in the warehouse we achieved:
- 100% increased deliveries are served now by 25% reduced staff
- Easy inbound of goods from their purchase till their arrangement in the warehouse.
- Easy checks for auditors and state authorities.
- Traceability in any moment.
- Longer life for advertising materials.
- Reduced number of damaged goods.
- The options for abuses were reduced to minimum. Even if someone decided to make something wrong, this would be caught in a very short time, the guilty person and the damage size would be also known.
The challengeA company, trading with excise goods decided to implement an ERP system which to serve its total business. Till now the company has used an accounting oriented program and the manual operations were widely applied. The company has selected by itself the ERP system and its implementer, but asked us for advice regarding the blue print.
The solutionWe worked with the customer to evaluate the processes and to set the goal for further operations development in the company. After a short analysis of implementer’s proposal it appeared that:
- There is a lack of global view over all operations – every department wanted something without knowing how the links in the program would work.
- The implementer has cut the process – which leads to much additional development immediately after the implementation.
The resultWith rewriting the blue print we achieved:
- 100% compliance with legislation and the company rules.
- We saved about 30000 euro from development just because we set the correct process and links among the modules in the beginning.
- We rearranged the responsibilities of each employee, related to operations, because the main workload was concentrated in one department only (not the correct department).
- We reduced significantly the manual operations by optimizing the processes.
The challengeA company trading with industrial goods asked us to audit its supply chain. The owners managed the company without wasting resources but assigned the audit to check for possible gaps. Apart from that the ISO certification should have been renewed soon, so the owners wanted to update all procedures related to supply chain and the update to be done by experts in this area.
The solutionWe interviewed all employees related to supply chain – planner, logistics specialist, warehouse employees. We updated some procedures and created new procedures also. We run tests for logistics providers – for international and domestic transport.
The resultBy the run tests and negotiations we achieved:
- 20% saving from sea transport costs
- 14% saving from domestic transport costs
- 12% savings from international road and air transport costs
- Correct supply chain process.
- Allocation of duties and avoidance of potential abuses.
- Unifying and updating of all procedures related to supply chain.
- More structured processes.
The challengeA company dealing with direct marketing wanted to change its sole subcontractor but was afraid that there were no alternatives. The sole subcontractor did not want to reduce the prices and kept them very high, taking advantage from the dead end. The aim was to find a solution for getting out this situation.
The solutionAs the sole subcontractor refused to negotiate and was harming the business, we found potential alternative suppliers which we trained and led their hands till the project end. We negotiated on our customer’s behalf, signed a contract and controlled the fulfillment of the new subcontractors.
The resultBy finding alternative suppliers we achieved:
- Flexibility in orders fulfillment.
- Collected the know-how at one place
- 63% cost saving
- Full control over subcontractors’ operations related to our customer
The challengeA company-producer of food, asked us to propose them a way to fulfill all customers’ orders and plan the production. At the time of the request this company was fulfilling only 70% from all receive orders, was losing market share, did not manage deliveries and was producing chaotically with lots of loses.
The solutionAfter a detailed analysis we found many reasons for the bad supply chain management. We structured the planning process, unified the production programs and increased the machines workload. We trained the personnel how to plan and how to communicate with suppliers. We implemented cash flow planning also and released the inefficient employees.
The resultBy implementing the planning and the procedures we achieved:
- 91% order fulfillment rate just for one month (21% more).
- Avoiding out-of-stock situations
- 97% schedule attainment in three months
- From 8% to 20% more efficient machines
- Reduced work week from 5 to 4 days but still keeping the same volumes production
- Revealing a “combination” between employees which has led to ineffective production and resource waste.
The challengeA company-producer of food, asked us to find an alternative supplier for one of their main ingredients. At the time of the request this company has worked with one supplier only who was not rather cooperative, has unstable quality and high prices. The aim was to find one or two firms providing the same raw material but at better price, longer credit terms and stable quality.
The solutionThe customer sent us the specification and we started to search. During the search it appeared that there are many unsolved technological issues which required fast corrective actions by the customer. Nevertheless all difficulties, we found and delivered raw materials from many suppliers.
The resultBy finding alternatives we helped the customer to get out of one unpleasant situation where he was forced to negotiate every lot. By finding alternative suppliers we achieved:
- We found a raw material with higher quality and negotiated the current price for it and longer credit period
- We found a raw material with the same quality and negotiated it at lower price and longer credit period
- We gave the possibility to our customer to choose from where buy and now he is the one who sets the trade conditions.
The challengeA company-producer of packaging materials, asked us to find a logistics partner which to take 100% care about the domestic distribution. At the time of the request the company has used the services of its own small fleet and occasional carriers without any contracts. As a result finding a transport was a difficult task which sometimes led to delays in deliveries or transportation at higher price. The aim was to find one or two firms (carriers or forwarders) which to serve entirely and on time the destinations, nevertheless seasonality or load sizes.
The solutionWe went with the customer overall the process related to transport organization and found the gaps which were blocking the smooth workflow. We pointed the selection criteria, run a tender and signed a contract with a reliable logistics partner able to meet customer’s needs. We presented the customer from the beginning till the end, protecting all his interests.
The resultWe helped the customer in a moment when he was significantly troubled to get out of one unpleasant situation which cost him time, money and nerves. We structured the orders planning process, the communication and the work manner in Transport department. By finding the appropriate logistics partner we achieved:
- Organized transport for each delivery
- Set processes and smooth workflow
- Avoiding everyday negotiations with carriers
- 13% saving of transport costs
The challengeA company, owner of an internet platform, which unifies farms from all over the world, asked us to find a logistics partner which to transport farmers’ goods (food without conservatives) quickly and according the legislation. Our customer knew neither what the criteria for selection were nor the legal restrictions. But the service should be at high level and the lowest possible price.
The solutionAs our customer did not have the competencies and the resources for this project, the first thing we did was to educate his staff about the legal restrictions and the risks from poor service. We pointed the selection criteria, run a tender and signed a contract with a reliable logistics provider, able to meet the legal requirements and the customer’s needs. We presented the customer from the beginning till the end, protecting all his interests.
The resultWe helped the customer in a moment when he did not have knowledge and resources to ensure value added service to his customers. By finding the appropriate logistics partner we achieved:
- Deliveries which fully comply with legislation.
- Value added service to our customer’s clients (farmers and end users).
- Fast deliveries.
- High service quality
- Parcels traceability
- Best prices
- Reduced administration
- Worldwide coverage