Supply Chain Flow Optimisation with Multi-channel Distribution Strategy
The Situation
Operation Director and Managing directors of Business Units needed to improve demand planning, stock allocation, and supply chain efficiencies across the business.
Initially, the client legacy operating model was focused on manufacturing in the far east with distribution model to bring products to markets via kiosks and retailers in different countries in Europe and the US.
Following a business review it became apparent that direct-to-consumers strategy (online) got more traction than the business expected, this meant that commercial and financial benefits were over delivering but the (global) supply chain was not fit-for-purpose.
This was affecting the bottom line, team productivity and client satisfaction.
Initially, the client legacy operating model was focused on manufacturing in the far east with distribution model to bring products to markets via kiosks and retailers in different countries in Europe and the US.
Following a business review it became apparent that direct-to-consumers strategy (online) got more traction than the business expected, this meant that commercial and financial benefits were over delivering but the (global) supply chain was not fit-for-purpose.
This was affecting the bottom line, team productivity and client satisfaction.
The Task
- Review Supply Chain Flow Globally
- Understand the data points across the business to assess how decisions are being made.
- Conduct a technology Assessment
- Map internal and external stakeholders of the supply chain
- Skills gap analysis
- Supply Chain Process Mapping (AS IS) and recommendation (TO BE)
The Action / Approach
- Brought in Supply Chain Consultancy to support supply chain flow audit, stakeholder engagement and processes mapping [how did you do this?]
- Evaluated gaps between the Business Units and supply chain teams (Production, buying, operation, warehouse and fulfilment)
- Enabled data analysis, KPIs and identify insight and patterns to support Business recommendations and supply chain improvement [what does this mean? What data analysis? What KPIs, for what? What kinds of insights and patterns?]
- Organised cross-functional workshops to facilitate teams alignment and adopt customer-centricity practices
- Scheduled Demand Planning Forum to engrained cross-functional alignment for all Business Units globally and increase confidence across the business.
- Reduce business challenges by tracking of implementation roadmap, including.… what was special about your roadmap? How was it implemented?
The Result
- Clear 30% of unsold stock across warehouses
- Improve purchase and production with central demand planning capability : save up to 10% with manufacturing suppliers and negotiate appropriate Minimum Order Quantity.
- Reduce time to market of new products by up to 6 weeks with Direct To Consumer strategy.
- Increase revenue of direct to consumer channels by 25% in less than a year (improve stock allocation)
- Save cost of warehousing and transportation by 5% across the business
- Improve client satisfaction and reduce customer care complaint by over 50%
- Activate new line of revenue with direct to consumer delivery – with strategic supply chain partners.
Focus In On: Responsible for Project and Programme Delivery
New Areas of Value:
Ability to clearly demonstrate value to the business
Higher delivery efficiency and effectiveness from clarity around process performance
Greater financial control and predictability in delivery
Increased credibility with and confidence from across the business
Increased influence with suppliers
Greater acceptance of change – quicker to implement new changes
Higher proportion of projects fit for purpose, on time and on budget
Improved project estimation and delivery capability (right first time)
Better support of business directives
Improvements around:
Disruption from business restructure or reprioritisations
Lack of clarity or understanding on operational readiness requirements
