CASE STUDY

Transforming the end-to-end Business Planning of a building materials manufacturer

Our client is a multinational manufacturer of building materials and security solutions. In accordance with their global strategy, they embarked on a comprehensive supply chain transformation journey, aiming to unveil internal synergies and realize substantial benefits, such as profitable growth and cost efficiencies.

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Strategic COntext

Significant organic and inorganic growth led to increased complexity & a sub-optimized logistics footprint

Launch of new products meant to trigger growth, sourcing many components from the Far East

Demand and margin pressures triggered the need for a Supply Chain transformation 

Challenges
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Challenges
  • High customer-specific demand and variability in product offerings causing increased complexity and growing business inefficiency. 
  • Outdated local planning solutions and fragmented processes hindered effective decision-making and transformational supply chain improvements. 
  • The organization grappled with insufficient visibility across the end-to-end supply chain, hampering an agile and performing supply chain. 
  • Increased customer complaints due to reduced delivery performance despite surplus inventory, more storage locations and increased FTE. 
Objectives
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Objectives
  • Optimized logistics footprint and distribution network to improve service level and reduce costs. 
  • Digitized and integrated supply chain planning to significantly reduce inventories and improve planning efficiency while increasing OTIF. 
  • Strategic outsourcing of central distribution centre and significantly lower transport costs.
Our approach
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Our approach
  • First of all, we created a clear roadmap taking into account the as-is to define a transformational but focused approach with clear milestones and targets. 
  • In order to fund the whole business case, a transport cost sourcing optimization was done. 
  • Based on the design, the footprint was optimized including a make vs buy discussion. 
  • During the transformation, a 3PL partner and a cloud-based connected supply chain software were selected, while best practice IBP processes were designed, piloted and gradually rolled out. 
Results
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Results
  • SKU Complexity Reduction incl. process set-up, framework definition and operationalization to make it sustainable. 
  • Reduced supply chain cost based on an optimized network, transport cost reduction and IBP & warehouse process optimizations executed by the selected 3PL partner. 
  • Digitized IBP processes to improve OTIF while step-by-step reducing inventory. 
  • Logistics Visibility for Ocean supplies and freight forwarder activity tracking, reporting and collaboration enabled by digital tools, supporting the inbound logistics development as a competitive weapon of our client.