Case Study – SUPPLY CHAIN OPTIMISATION

THE CHALLENGE

SUPPLY CHAIN REVIEW AND OPTIMISATION

4D delivered significant procurement cost reduction and stock turn improvement for an integrated steel alloy manufacturer.

DIAGNOSIS

Following a comprehensive strategic review with local management, key priorities for business improvement were identified:

  • Lack of spend visibility due to disparate sources of procurement data, often uncategorised
  • A disconnect was identified between the manufacturing and commercial teams leading to poor contract management and compliance and a proliferation of supply SKUs
  • Performance management of key suppliers was constrained due to limited KPIs and poor spend visibility
   

DEVELOPMENT

 

4D deployed business process improvements across a multi-functional team to improve procurement collaboration and implemented a supplier management process that led to a step change in supplier performance.

 

DELIVERY

strategy-development
  A procurement and supply chain dashboard was implemented to drive savings and stock management
  Incremental 6% savings in spend from key suppliers
  Visibility of demand enabled the procurement team to improve raw materials stock turn from 6 to 11 on key SKUs
  Procurement increased spend influence from 56% to 78%
     

DIFFERENT

The sector experience of the 4D Team allowed a rapid understanding of the clients’ requirements and absorbed a minimal amount of local management time in ensuring a timely and cost effective delivery of the project objectives. 4D Dashboard Technology was utilised to provide ongoing real time integrated management information to enable long term monitoring of supplier performance and stock turns.

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