Establish customer service policies.Company: INDUSTRIAL SECTOR.

 

Case study:

A company of the electrical equipment sector in the process of international expansion, with a strategy based on customer service, which required ongoing growth without increasing its working capital needs. The CEO hired us to help in the definition of a new strategic plan to successfully tackle this growth.

 

Analysis:

A comprehensive internal Analysis on the Company’s situation was conducted. It was found that the deployment of the defined strategic plan with the implemented operative that the Company was working with, would mean an investment in working capital that threatened to collapse the growth of the business group. The comprehensive analysis included the areas of R & D, planning, purchasing and procurement, manufacturing, internal and external logistics and distribution. An in-depth analysis on the network of suppliers and their management, the management and organisation of the production plants, the process of product development and the distribution network. It was detected that the priority was to carry out an exhaustive  internal reorganisation, where the main pillar should be the integral restructuring of the Company’s entire supply chain.

 

Project:

A plan for reengineering the supply chain, which contemplated seven different projects, and that would extend over a period of 18 months was defined:

  1. Establish customer service policies..
  2. Reduce suppliers’ delivery times, with intervention in their operations.
  3. Increase production flexibility, reducing the size of the production batches.
  4. Production planning and delivery reliability to customers.
  5. Improve performance of the production lines; overall increase in productivity.
  6. Management of procurements, delivery reliability and optimisation of the needs of stock of components.
  7. Components logistics and material flow optimisation.

 

Results:

  • Scrap was reduced by 58%, leading to a 35% increase in productivity.
  • Changing times for lines were standardised, obtaining an improvement in achieving planning.

 

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