Case studies

Health Check

• Background
  • A chemical material manufacturer who experiences annual health check on its SCM
• Project
  • 10 day project covered
    • Demand management
    • Inventory management
    • Production planning
    • Materials planning
    • Import & export
    • Warehouse management
    • 3PL performance
  • by interviewing Operation Director, Plant Mgr, Logistics Mgr, Purchasing Mgr, Sales Mgr and planners. Key figures were also analyzed.
• Potential Issues
  • Forecast error due to improper process;
  • Frequent out-of-stock at distribution centers caused by improper planning and modeling
  • No clear service policy
  • Conflict between production batch and inventory level
    Inaccurate inventory report
  • Lack measurement on supplier performance on delivery time
  • Sales skew due to push to distributors
  • Black hole on Distributor Price Protect Scheme
• Output
  • A report with prioritized suggestions
  • Training plan

Analysis and Design

• Background
  • A lubricant manufacturer with US$60m revenue and over 100 distributors
• Issues
  • High AR due to poor management on inventory and AR at distributors
  • Lack of visibility of sales, inventory and AR through network
  • Improper planning method and stock models at the manufacturer
  • Lack of effective communication platform between the manufacturer and distributors
• Project
  • The client launched a project, aiming a collaborative distribution network; A pilot distributor was selected and a small consultant team was sent to distributor site to conduct analysis and design.
• Result
  • KPIs were established at the pilot
  • Communication platform enabled the client to monitor distributor operations
  • Inventory was down to 70%, while AR to 80%
  • As a pilot project for roll-out

Facilitation to Implementation

• Background
  • A electric power manufacturer who wanted to split service geography from 3 DCs to 4.
• Project (Phase I – 4 weeks Analysis)
  • Comprehensive data analysis included
    • Historical sales order
    • Shipment cost
    • Service level
    • Lead time
  • Simulation according to current customer structure and forecast
  • Survey on potential 3PLs
    
• Project (Phase II – 12 working day Facilitation to 3PL selection)
  • Evaluate service requirement
  • Clarify criteria window
  • Prepare RFI
  • 1st round interview
  • Group selection
  • Prepare RFP
  • 2nd round interview
  • Last bid
  • Contracting