supply chain improvement & change project ... - juthout advies · services (delivery window,...

interim operations & project management specialist in logistics & supply chain management

Supply Chain Improvement & Change project Automotive industry

Business Case

Motorcycles

Outboard engines

Scooters

Snowmobiles

Portable generators

Golf cars

All Terrain Vehicles

Water vehicles

Inflatable boats

Genuine Parts

Genuine Accessories

Products

Products Parts & Accessories: # SKU: 140K, characterictics see aside 40K order lines/day Finished products: # SKU : 2K per year, yearly model change 1,5K – 3,5K order lines/day in season Markets Markets: EU + Turkey, Russia, Middle East Delivery: to 8.000 dealers and 10 Distributors Suppliers Asia, Africa, N-America, S-America and Europe

Profiles

FAST

MOVERSMODERATE

MOVERSSLOW

MOVERS NON

MOVERS NEW ITEMS

S/O Lines

Stock Value

Items Stocked

Allocation Level

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Strategy Organizational Tactical Operational

The "dream"/idea O

Create a shared need O O

Develop concept O O

Mobilize commitment O O

Plan/define the change O O

Communicate the change O O O

Implement the change, align infrastructure

O O O

Sustain momentum O

Elements change process

Elements of project Central Inventory Management Warehouse system Transport/Distribution system IT system Naked & Returnable Packaging

Project management & control Prince2

The project

Target Transparency in inventory, improve service and cost saving

The idea Sharing the needs Create the Concept Mobilize commitment Plan/Define the change Communication Implement the change and align infrastructure Sustain momentum

The “dream”

Central Inventory Management

New central inventory management system with ATP (Available To Promise) for sales companies to realize transparancy in european stock and flexibility in allocation in regions

Warehouse system One warehouse concept in Europe, all receipt to, storage in and shipping from warehouse to dealer must be equal irrespective warehouse origin

Transport/Distribution system

One transport/distribution concept in Europe, all deliveries from warehouse to dealer must be equal irrespective warehouse origin

IT system One IT system to support logistics in Europe for inventory planning & control, inbound, storage, outbound and custom clearance in Europe

Naked and returnable packaging

Products to be delivered naked or with returnable packaging to dealers to contribute to reduction carbon footprint and improve image (CSR)

Sharing and exploration needs


Identify requirements of key sales companies and factories, ensure understanding for impact of change and clarify opportunities (improve allocation level and in time availability, savings by order sizes) and threats (ATP flexibility and seasonality)

Warehouse system Identify key requirements and service levels of sales companies and factories, ensure understanding for change and clarify opportunities (savings by scale) and threats (seasonality)


Clarify with sales companies the required lead times and services (delivery window, location constraints, extra services) and feasabilities to improve service

IT system Identify with all stakeholders (Sales, Factories, Planning, HQ) current systems and room to improve while aiming at centralization and standardization


Based on test with naked transport from Asia to Europe, identify opportunities and investments for naked distribution and consider impact on carbon footprint and image (CSR)

Concept

Central Inventory Management Develop new organization with responsibilities and capabilities in HQ and clarify with stakeholders on forecast/sales planning, production planning/order system and allocation procedures. Define new margin structure.

Warehouse system Develop warehouse concept for parts & accessory operations and for finished products. Concept must include kitting (including owner manuals), technical workshop for customization on order and for re-calls. Outsourced operations and frequent location/sizing studies to keep flexibility

Transport/Distribution system Develop transport concept with A, B and C flows: A is from European Plant to DC, B = from DC to carrier platform and C = final distribution. Integrated system for parts, accessories and finished products for A and B flows. Central X-dock in Parts warehouse in Lyon for daily linehauls to all DC's

IT system Develop IT system to support sales forecast, inventory planning and control, oroduction orders, warehouse operations, distribution planning, shipping and customs, and as platform for KPI reporting and analysis.


Develop concept for naked transport in steel returnable crate (overseas products) or on returnable wooden pallet (for european products). Delivery of parts and accessories in returnable crates. Control pool of returnable crates and pallets

“It dries when it is put into the sun” Organize meetings with stakeholders and organize buy-in and support of key functions and persons. Bridge resistance and key issues, tune where required and make the vision/concept accepted. Make use of planned meetings with top management, plants, sales companies and HQ and present plan, status, progress and process. Keep it clear, simple and transparent. Final decision go/no-go to start project

Commitment

Organize the project and prepare on change

Re-check solution design with stakeholders Reconfirmation conditions, processes and procedures Define scope Clarify on tasks, work streams and project organization Organize support and use project tool (PRINCE2) Agree on planning Risk analysis with stakeholders Budget approval Prepare on change, including test and training

Create awareness and involvement

Publication of weekly Project Bulletin Project and Steering Committee meetings Frequent meetings with stakeholders, divisional meeting, meetings with countries, plants, HQ etc. Use standard meetings (sales/factory meetings) to present status Create open atmosphere: be open for feedback and open minded to adjust/tune on developments Select reference group (dealers per country) for change preparation, evaluation and follow-up

Project execution & change


Develop new SCM organization and implement new processes and systems, keep alignment with plants and sales companies involved and create mature process

Warehouse system Decide locations and size and requirements per location. By tender, select location and service provider and agree on contract period (3 years) and KPI


Describe process and requirements and decide by tender on companies for A, B and C transport (C transport in cooperation with local sales companies for buy-in)

IT system Develop new IT system and phased roll-out in line with start of warehouse operations (planning for orders/deliveries to new DC and shut down of local operations)


Decide on new set-up and required equipment (returnable crates, steel/wooden pallets, handling and process/procedures for warehouse and during transport)

During project and change Adjust planning to secure quality of change over original planning Adjust organization to keep alignment with project and process Reporting system for stakeholders (daily, weekly, monthly) Frequent evaluations with all stakeholders Execute adjustments and tune where required And afterwards Stay in control Pro-active monitoring and information to stakeholders Frequent evaluation meetings Keep in contact with final customer

Keep Momentum

Central European inventory management resulting in increased allocation, improved service and optimal stock Achieve targeted and significant cost reduction Stable, transparent operation and control by KPI Delivery of services based on agreed terms and conditions for cost-to-serve and delivery lead times, evaluation with reference groups Transparent information to stakeholders and third parties Flexibility to cope with changing volumes (sales, assortment) Central IT system: condition for optimal PSI (Production, Sales, Inventory) and base for bonded warehousing and multi site customs administration Efficient & effective in/outsourcing, purchasing and tender management of services (3/4PL) and materials Implementation of returnable packing and optimized transport and distribution (impact for carbon footprint) Centralized “trade facilitation” and compliance management (F&A,HR, customs, tax, risk, security, safety) International teamwork within the Group

Achievement

Summary

Supply Chain improvement and change project

Central Inventory Management Warehouse system Transport/Distribution system IT system Naked and returnable packaging The "dream"/idea New central inventory

management system with ATP (Available To Promise) for sales companies to realize transparancy in european stock and flexibility in allocation in regions

One warehouse concept in Europe, all receipt to, storage in and shipping from warehouse to dealer must be equal irrespective warehouse origin

One transport/distribution concept in Europe, all deliveries from warehouse to dealer must be equal irrespective warehouse origin

One IT system to support logistics in Europe for inventory planning & control, inbound, storage, outbound and custom clearance in Europe

Products to be delivered naked or with returnable packaging to dealers to contribute to reduction carbon footprint and improve image (CSR)

Create a shared need Identify requirements of key sales companies and factories, ensure understanding for impact of change and clarify opportunities (improve allocation level and in time availability, savings by order sizes) and threats (ATP flexibility and seasonality)

Identify key requirements and service levels of sales companies and factories, ensure understanding for change and clarify opportunities (savings by scale) and threats (seasonality)

Clarify with sales companies the required lead times and services (delivery window, location constraints, extra services) and feasabilities to improve service

Identify with all stakeholders (Sales, Factories, Planning, HQ) current systems and room to improve while aiming at centralization and standardization

Based on test with naked transport from Asia to Europe, identify opportunities and investments for naked distribution and consider impact on carbon footprint and image (CSR)

Develop concept Develop new organization with responsibilities and capabilities in HQ and clarify with stakeholders on forecast/sales planning , production planning/order system and allocation procedures. Define new margin structure.

Develop warehouse concept for parts & accessory operations and for finished products. Concept must include kitting (including owner manuals), technical workshop for customization on order and for re-calls. Outsourced operations and frequent location/sizing studies to keep flexibility

Develop transport concept with A, B and C flows: A is from European Plant to DC, B = from DC to carrier platform and C = final distribution. Integrated system for parts, accessories and finished products for A and B flows. Central X-dock in Parts warehouse in Lyon for daily linehauls to all DC's

Develop IT system to support sales forecast, inventory planning and control, oroduction orders, warehouse operations, distribution planning, shipping and customs, and as platform for KPI reporting and analysis.

Develop concept for naked transport in steel returnable crate (overseas products) or on returnable wooden pallet (for european products). Delivery of parts and accessories in returnable crates. Control pool of returnable crates and pallets

Mobilize commitment "It dries when it is put in the sun". Organize meetings with stakeholders and organize buy-in and support of key functions and persons. Bridge resistance and key issues, tune where required and make the vision/concept accepted. Make use of planned meetings with key management and sales companies and present plan. Keep it clear, simple and

transparent. Final go/no-go to start project Plan/define the change Reconfirmation of concept with key stakeholders. Plan scope, tasks, project organization, planning, budget and identify risk. Build the project organization with Steering

Committee and Executive Committee for global projects. Involve stakeholders in risk analysis. Prepare on communication and training Communicate the change

Publication of weekly project bulletin, plan next to project and Steering Committee meetings also stakeholder and divisional meeting, meetings with countries, plants, HQ, end-users, etc. Create open atmosphere and be open for feedback and open minded to adjust/tune on developments, Select reference group (dealers per country) for follow-up

Implement the change, align infrastructure

Develop new SCM organization and implement new processes and systems, keep alignment with plants and sales companies involved and create mature process

Decide locations and size and requirements per location. By tender, select location and service provider and agree on contract period (3 years) and KPI

Describe process and requirements and decide by tender on companies for A, B and C transport (C transport in cooperation with local sales companies for buy-in)

Develop new IT system and phased roll-out in line with start of warehouse operations (planning for orders/deliveries to new DC and shut down of local operations)

Decide on new set-up and required equipment (returnable crates, steel/wooden pallets, handling and process/procedures for warehouse and during transport)

Sustain momentum Reporting system for stakeholders (daily, weekly, monthly). Frequent evaluations with all stakeholders. Excute adjustments and tune where required. If required, adjust planning to secure quality of change over original planning and keep project organization aligned with project and process. Keep in contact and evaluate with end user.

Rietvink 6 8356DR Blokzijl The Netherlands T: +31 (0)6 515 605 86 E: [email protected] W: www.juthoutadvies.nl Albert (A.A.) Jager

Contact

interim operations & project management specialist in logistics & supply chain management

http://www.juthoutadvies.nl/

supply chain improvement & change project ... - juthout advies · services (delivery window,...

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