Projects
Project Overview: Our client enlisted our SCM services to enhance their Procurement department's efficiency and effectiveness. The primary objectives included qualifying new suppliers, negotiating favorable pricing, reducing lead times for materials, and optimizing distribution processes.
Key Achievements:
Supplier Qualification: Identified and qualified 55 new suppliers from China, expanding the Client's supplier base for diversified sourcing options.
Cost Savings: Negotiated new pricing agreements with suppliers, resulting in a significant 17% cost reduction across procurement operations.
Lead Time Reduction: Implemented innovative supply strategies and negotiated Master Supply Agreements (MSAs), leading to a remarkable reduction in lead times for long lead materials. The lead time was slashed from eight weeks to just four weeks, streamlining production schedules.
Distribution Center Optimization: Established new distribution centers strategically, optimizing the supply chain network. This initiative led to a notable 30% reduction in shipping times, ensuring timely delivery of materials to support manufacturing processes.
Impact:
Enhanced operational efficiency within the Procurement department.
Improved cost-effectiveness through reduced procurement costs and optimized supply chain processes.
Strengthened supplier relationships through strategic negotiations and collaborative agreements.
Facilitated smoother production workflows by minimizing lead times and ensuring timely availability of materials.
Conclusion: By successfully revamping the Client's Procurement department, our consulting team not only achieved significant cost savings but also laid the groundwork for sustainable growth and operational excellence. The implemented strategies and optimizations are poised to drive long-term value for The Client's supply chain operations.
Project Overview: Our consulting company was tasked with revolutionizing Client's chemical material supply strategies and category management. The objective was to enhance efficiency, reduce costs, and streamline the overall supply chain process.
Key Activities:
Strategy Development: We analyzed the client's existing supply chain model and devised new, innovative supply strategies tailored to their specific needs and objectives.
Supplier Qualification: We conducted rigorous assessments to qualify potential new suppliers, ensuring they met the client's quality standards and compliance requirements.
Negotiation and Agreement: Our team negotiated pricing and contractual agreements with selected suppliers to secure favorable terms and conditions for the client.
Execution Management: We oversaw the seamless execution of the newly developed supply programs, monitoring performance and addressing any issues promptly to ensure uninterrupted supply chain operations.
Achievements:
Cost Reduction: Through the implementation of optimized supply strategies and meticulous negotiation, we successfully reduced the client's overall supply chain costs by 15%, surpassing the targets set by the former supply chain program.
Enhanced Efficiency: The streamlined processes and improved category management led to increased operational efficiency, enabling TransCanada to achieve greater agility and responsiveness in managing their chemical material supply.
Conclusion: Our consulting company's expertise in supply chain optimization enabled the client to achieve significant cost savings while enhancing the overall effectiveness of their chemical material supply operations. By developing tailored strategies and fostering strategic supplier relationships, we helped TransCanada achieve sustainable improvements in their supply chain performance.
1- Project Summary: Procurement Department Optimization for Electronic
Manufacturer.
2- Project Summary: Chemical Material Category Supply Optimization for
Oil and Gas client.
3- Project Summary: Enhancing Supplier Qualification, Negotiation, and Warehouse Efficiency
Client: Automotive Manufacturer.
Project Objectives:
Improve supplier qualification process.
Negotiate better pricing with high spending suppliers.
Enhance warehouse efficiency and reduce material damages.
Optimize long-lead material planning process to reduce warehouse value.
Project Scope and Activities:
Supplier Qualification Enhancement:
Reviewed existing supplier qualification process.
Identified areas for improvement and refinement.
Implemented a streamlined process for qualifying new suppliers.
Qualified 20 new suppliers with better pricing and higher quality.
Supplier Price Negotiation:
Conducted analysis of spending patterns with existing suppliers.
Negotiated pricing with high spending suppliers.
Achieved a 15% reduction in prices, improving cost efficiency.
Warehouse Efficiency Improvement:
Conducted inventory parts analysis to understand movement patterns.
Developed a new warehouse layout based on parts movement analysis.
Implemented the redesigned layout to minimize material damage during handling.
Reduced the use of forklifts, enhancing safety and efficiency.
Long-Lead Material Planning Optimization:
Evaluated existing long-lead material planning process.
Identified bottlenecks and inefficiencies.
Developed and implemented a new process for long-lead material planning.
Resulted in a reduction of warehouse value from 8 million to 5 million through optimized inventory management.
Results and Achievements:
Qualification of 20 new suppliers with better pricing and higher quality standards, enhancing the supplier base.
Negotiated a 15% price reduction with high spending suppliers, leading to significant cost savings.
Improved warehouse efficiency, resulting in reduced material damages during handling, decreased forklift usage, increased inventory turns number, and increased inventory accuracy and cycle count process.
Optimized long-lead material planning process, reducing warehouse value by 3 million dollars, and improving capital efficiency.
Conclusion: The project successfully achieved its objectives by enhancing supplier qualification processes, negotiating better pricing, improving warehouse efficiency, and optimizing long-lead material planning. These improvements have not only resulted in cost savings but have also enhanced overall operational efficiency for Sleegers Manufacturing Company.