26%Reduction in European supply chain costs
With four principal manufacturing locations in Europe and a legacy network of Regional Distribution Centres and dealerships, our client was finding it difficult to efficiently manage its supply chain within its core European markets.
Woodland Group’s objective was to radically reduce costs, improve inventory management and upgrade customer service standards. At the same time, we were tasked with ensuring that any consequent structural changes were beneficial to the client’s worldwide operations.
How we delivered
We offer expert personalised solutions to help your business succeed. We delivered the following services to help this client's growth.
Our supply chain solutions team conducted a meticulously-detailed survey of structures and methodologies. This covered customer service and inventories, transportation networks and warehousing, ERM system and administrative interfaces and manufacturing requirements.
Drawing on quantitative and qualitative information, we developed and costed practical alternative models to establish an optimum supply chain configuration. We also visited the client and their customers around Europe to gather more information and discuss proposed structural changes.
We eliminated unnecessary processes and restructured existing supply chain logistics. Specifically, we removed of all but one of the client’s RDCs and concentrated demand on their principal factory warehouse.
We re-engineered factory bulk warehouses into rapid response facilities – supplying customers and dealers direct. In addition, we totally re-organised their transportation networks.
Along with these solutions we also suggested:
- The introduction of a deal/subsidiary company over scheduling.
- Changing methods to improve factory warehouse productivity.
- Ensuring ICT interfaces functioned at maximum efficiency.
- Changing from a ‘forecast’ to a ‘re-order point’ inventory planning model.
- Detailed management reporting to provide total transparency of performance against KPIs.
The Woodland Group team managed the programme through to a successful conclusion. The results were measurably successful, as we reduced European supply chain costs by over 26%, inventories by inventories by over 40% and write-offs/damage and returns by over 70%.
Our solutions also improved labour productivity at our client’s central warehouse by over 70% and raised ex-stock product availability from 57% to over 90%. Not least, we reduced lead times by 25% and fixed them for each consignee.
- Provided precise, timely data based on costs, service levels and other KPIs, enabling informed management decisions.
- Applied improved methods in scheduling and materials flow, along with an interface with global markets.
- Implemented a shortened, more visible supply chain, simplified by the improvement of production planning.
- Introduced clear visibility of inventory and material-in-progress, both to the warehouse and from the warehouse to customers.