A manufacturer of electric pumps and motors

Providing European centralized parts distribution.

3/23/2023

The customer had a decentralized set-up with country-based management of inventory meaning that despite high inventory stocks there was a low order rate fill. Operations were therefore suboptimal in terms of efficiency and management costs were high.

Our customer's business challenges

We optimized the entire European Spare Part supply chain and reduced costs at the same time. Firstly we reduced the overall number of warehouses and inventory levels. We then reduced manufacturing interruption and increased both service levels and quality

TRANSFORMATION STORY

Our key actions to fulfill our customer's ambition

The customer now benefits from standardization of processes, procedures and packaging. We have introduced much greater product and shipment visibility through clear KPI reports.

Service levels have improved delivering better on-time performance, quality and stock accuracy resulting in needing to hold less safety stock in the supply chain. This greater visibility has led to much higher reliability meaning much increased customer satisfaction. The customer now has a carrier interface with outbound scanning.

The more centralized operation means the customer can now offer in night deliveries to engineers.

We have also been able to implement cradle returns.