8-12 Weeks
4 – 6 Months
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Industry: |
Global Utility Vehicles OEM |
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Company Size: |
60,000+ |
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Project Location: |
Germany |
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Problem Statement: |
Due to a significant boost in customer demand and the associated need to drastically increase production and stock levels within a very short time period, our customer slid into a severe inventory integrity crisis. Parts and components could not be found in the warehouse or got damaged due to painful storage space constraints. Trying to make up for the inefficiencies, our customer decided to hire dozens of inexperienced and unskilled warehouse workers - which was completely counterproductive and exacerbated the situation. If the inventory crisis could not be rapidly solved, the audit of the annual statement of accounts would be at high risk to fail.
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Meeting: |
Warehouse tour with operations and accounting to understand magnitude of challenge; get feeling for number of SKUs, utilized storage space, workload and current shop floor headcount
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Deep Dive: |
Analysis of all part and component categories as well as sales forecast and demand plan for next 6 months; calculation of all storage, stock keeping and material handling costs; development of roadmap to lead organization out of triage towards regular operations
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Hypothesis: |
Our customer's logistics and warehouse organization is too weak to rapidly maneuver out of triage mode and to re-establish data- and inventory integrity. If all parts and components will be transferred to an external non-union 3PL (Third Party Logistics) provider who is capable of managing complex inventories, inventory integrity will be re-established and our customer can focus on production.
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Project: |
2 consultants 12 weeks |
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Deliverables: |
3PL RFP including workloads, SKUs, handling units and processes, etc. prepared Market analysis to identify capable 3PL providers performed Multiple 3PL providers qualitatively and quantitatively evaluated Core processes mapped and aligned with customer and 3PL IT interfaces coordinated between customer and 3PL Pilot phase with selected components successfully completed |
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Bottom Line Impact: |
Inventory integrity re-established Audit of the annual statement of accounts passed Logistics costs (3PL vs. internal warehouse) reduced by >20% |
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