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Case Studies
End 2 End supply chain development for retail software products
Client Project Objectives
Develop a business model to enable our client to transition ownership of the planning management for retail software products from their EMEA software customer.
Design tools capable of managing poor forecasting from the distribution channels capable of delivering an enhanced more agile service levels to cope with unexpected peak demands.
Deliver reduced inventory liability and more flexible lead-times and component cost reductions
Project main achievements
- Print lead-times were reduced by 33% with safety stock liabilities removed, while costs were reduced by 18.5%
- Local vendor managed hub set-up for soft box component providing greater flexibility for unexpected peaks and costs reduced by 10%
- Reduced components lead-times enabled client to cut pack-out manufacturing time by 25% implementing increased service levels to their customer
- Planning model designed & implemented, which compares forecast, customer orders and average of prior weeks shipments to determine demand
- Metrics pack developed to measure successes and drive increased forecast accuracy
- Implementation and training achieved within the targeted timelines without any impact to “on time right delivery” metrics
Central European Supply | Chain Management Project
Client Project objectives
Source an alternative supply base in Poland, which could achieve significant savings to the end customer and agree supplier contracts.
Approve new supplier facilities and agree component costs with client’s customer and business partners.
Recruit staff, develop processes and procedures to manage the business, provide training and ongoing operational management.
Transition the business from a Hungarian facility and launch in Poland within a 2 month time frame.
Project main achievements
- Interaction with multilingual / multi jurisdictional project team, to deliver on time and within budget project launch.
- The management of client’s branch set-up in Poland in adherence to all local regulations, legal requirements and customs / tax clearance declarations.
- Components sourced from a pan European supply base delivering exceptionally high cost reductions for the project launch. Additionally large reductions have been delivered year on year since the operation commenced.
- Extensive process design to achieve the client’s customer’s complex requirements, management of ERP system process implementation and EDI exchange development.
- Supplier sites and components approved in conjunction with client’s customer requirements. Tooling and existing stocks transferred from Hungarian suppliers to Polish suppliers where appropriate.
- Personnel recruited and trained including ongoing operational management to achieve further objectives. KPI objectives achieved from launch date and consistently achieved best in class.
- Client has declared the business model their template for launching future branches in other countries.
China Sourcing Project
Client Project objectives
Client Company wished to enter the market by launching a new brand of retail electronics sourced from China for sale in Europe.
Research to identify options for a local sourcing office to be set-up in Shenzhen.
10 commodities required a supplier base, with factory audits and price negotiations completion.
Recruitment research required identifying potential issues to be avoided and Chinese government legal requirements
Research on Chinese employment conditions and legal licensing requirements for setting up a branch office
Project main achievements
- 18 potential suppliers short-listed from an initial list of 40 sourced. Terms and conditions agreed with approved suppliers.
- Costs and proposed margins identified which would make the project feasible
- Quality process outlined for ensuring future shipments adhere to the exacting expectations of the potential consumers.
- Factory audits performed and suppliers approved for the initial set of commodities. During visits additional commodities with future marketing potential were identified.
- Office space identified with budget pricing prepared
- Appropriate resources and government sanctioned Employment Company identified. Market research conducted on employment pit- falls.
EMEA supply chain model design
Client Project objectives
Review of client’s EMEA business model for software and customisation fulfilment.
Develop a business strategy using newly emerging technology, ERP systems and consolidation of the supply base to support the viability of forming a new company.
Cost and compare the viability of investment in new technology and resources versus outsourcing to a business partner with existing competence.
Project main achievements
- Analysis completed of the existing business model taking lead-time to market requirements and cost deliverables into account
- Extensive review of ERP systems on the market and costs provided to support the new business model enabling the selection of the most appropriate for the new business model.
- Researched new equipment to support a reduced lead-time business process and the costs associated to decide the viability of short, medium and longer-term investment versus the outsourcing model.
- Designed a viable business plan, which delivered the lead-time requirements, a cost reduction to the end customer demonstrating the viability of the formation of a separate company.