Implementing an Integrated Supply Chain for a Global Manufacturing Company [Case Study]
In the past, a global manufacturing company had successfully expanded to several countries and wanted to support further expansion by becoming more efficient and sustainable.
Their goals included:
– The creation of a global operation strategy
– An increase in savings
– Improved governances, and
– Improved maturity of their supply chain
In order to be successful, they needed my expertise in procurement and logistics to initiate a significant change in company culture, break down internal silos and drive end-to-end collaboration.
The Solution: Creating the Conditions for Scalable Growth
I conducted an in-depth analysis that revealed a segregated, change-resistant organization with a low level of maturity. Procurement did not have leverage with suppliers and the company was leaving money on the table by using separate suppliers for raw materials. This placed the company at risk by sourcing from a sole provider.
While logistics was in a better position in terms of leverage, they needed to consider a more integrated solution. Management was aware of potential opportunities within their operations but struggled to realize them. All of these difficulties were compounded by poor data analysis, siloed processes and operations, and minimal forecasting ability.
I created a team consisting of subject matter and industry experts to break down barriers and enable cross-functional collaboration. This resulted in behavioural changes, which led to a better understanding of each function’s role in driving down costs and achieving the company’s goals. In addition, the team successfully:
Identified and resolved production bottlenecks while optimizing the manufacturing capacity
Improved communication between internal stakeholders
Introduced, negotiated and implemented new strategic procurement partners to reduce risk and support sustainable growth
Increased worldwide partnerships to support growth and on-time delivery
Reached KPIs with suppliers (existing and new) by communicating the importance of enhancing the quality and long-lead-time (on-time delivery)
Implemented integrated logistics to better serve their customers
By implementing the above solutions, we achieved:
An increase in delivery accuracy and a 25 percent reduction in outbound cost by using ERP technology
A decrease in supplier lead times — from three weeks to less than one — within three months post project delivery
Improved production capacity leading to a significant increase in revenue
In less than 10 months, the company saw a decrease in spending and 35 percent in savings on long-lead material procurement, logistics, and chemicals
Our purpose is to help companies realize their actual value.
We do this by centring our supply chain practice on people and infrastructure, and helping our clients develop a clear perspective on how they maintain value in a competitive environment. We ensure that your organization’s strategy is understood and translated into day-to-day actions that are implemented by front-line employees.
Learn more about how we can transform your supply chain today.
About the Author
Steve Salindeho has over 20 years’ experience in corporate strategy, supply chain orchestration and project management. He has designed, led and implemented various optimization and transformation initiative for oil and gas, petrochemicals, and manufacturing industries. His passion is to build a strong collaboration between people, technology, and business to increase productivity and create working environments that encourage innovation.