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
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Onboarding & Alignment
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- Gain thorough understanding of client’s overall business, markets, manufacturing operations, current supply chain, and logistics network
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Model current state of client’s supply chain and logistics operations
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- Current logistics network
- Process assessment
- Determine customer requirements
- Organization structure analysis
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Analysis to identify required changes and potential opportunities
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- Performance
- Voice of Customer
- Processes
- Organization Design
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Develop recommendations and action plan
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- Short term actions
- Medium term actions
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Hands-on implementation
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- 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)
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- 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
- Savings achieved through rate negotiation & reduction in expedited shipments
Timely Topics To Drive Growth.
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