25 Jan 2020

Supply Chain Optimization: Supply Chain Assessment

Background

  • Asia-Pacific manufacturing operations of a global chemical company was struggling to make on-time deliveries, carried excessive inventories, and had excessive freight and logistics expenses (primarily from expedited shipments)
  • EWA was engaged to identify operational problems and to develop/implement corrective actions to improve logistics & supply chain processes

Approach

Step 1: Onboarding & Alignment
  • Gain thorough understanding of client’s overall business, markets, manufacturing operations, current supply chain, and logistics network
Step 2: Model current state of client’s supply chain and logistics operations
  • Current logistics network
  • Process assessment
  • Determine customer requirements
  • Organization structure analysis
Step 3: Analysis to identify required changes and potential opportunities
  • Performance
  • Voice of Customer
  • Processes
  • Organization Design
Step 4: Develop recommendations and action plan
  • Short term actions
  • Medium term actions
Step 5: Hands-on implementation
  • Interim Supply Chain Manager
  • Develop RFP for logistics services
  • Implemented significant organizational changes
  • Support transition of new organization & process (bi-weekly project implementation meetings)

Results (Outsourced Product Line)

  • Savings achieved through rate negotiation & reduction in expedited shipments
    • Carriers were consolidated & outbound logistics processes were improved, with 15% reduction in freight costs
  • Improvements were made to forecasting & planning generated the expected results
    • Inventories were reduced by nearly half, generating US$MM cash
  • Customer service levels improved dramatically
    • On-time deliveries improved to > 90%
  • Organization stabilized & capabilities improved
More Case Studies