SUPPLY CHAIN SERVICES:

SUPPLY CHAIN ASSESSMENT

SUPPLY CHAIN SERVICES: SUPPLY CHAIN ASSESSMENT

BACKGROUND

An 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.

SUPPLY CHAIN SERVICES: SUPPLY CHAIN ASSESSMENT

APPROACH

Onboarding & Alignment

    • Gain thorough understanding of client’s overall business, markets, manufacturing operations, current supply chain, and logistics network

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)
SUPPLY CHAIN SERVICES: SUPPLY CHAIN ASSESSMENT

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
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