Case studies

Health Check

  • Background
    • A chemical material manufacturer who experiences annual health check on its SCM
  • Project
    • 10 day project covered
      • Demand management
      • Inventory management
      • Production planning
      • Materials planning
      • Import & export
      • Warehouse management
      • 3PL performance
    • by interviewing Operation Director, Plant Mgr, Logistics Mgr, Purchasing Mgr, Sales Mgr and planners. Key figures were also analyzed.
  • Potential Issues
    • Forecast error due to improper process;
    • Frequent out-of-stock at distribution centers caused by improper planning and modeling
    • No clear service policy
    • Conflict between production batch and inventory level
      Inaccurate inventory report
    • Lack measurement on supplier performance on delivery time
    • Sales skew due to push to distributors
    • Black hole on Distributor Price Protect Scheme
  • Output
    • A report with prioritized suggestions
    • Training plan

Analysis and Design

  • Background
    • A lubricant manufacturer with US$60m revenue and over 100 distributors
  • Issues
    • High AR due to poor management on inventory and AR at distributors
    • Lack of visibility of sales, inventory and AR through network
    • Improper planning method and stock models at the manufacturer
    • Lack of effective communication platform between the manufacturer and distributors
  • Project
    • The client launched a project, aiming a collaborative distribution network; A pilot distributor was selected and a small consultant team was sent to distributor site to conduct analysis and design.
  • Result
    • KPIs were established at the pilot
    • Communication platform enabled the client to monitor distributor operations
    • Inventory was down to 70%, while AR to 80%
    • As a pilot project for roll-out

Facilitation to Implementation

  • Background
    • A electric power manufacturer who wanted to split service geography from 3 DCs to 4.
  • Project (Phase I – 4 weeks Analysis)
    • Comprehensive data analysis included
      • Historical sales order
      • Shipment cost
      • Service level
      • Lead time
    • Simulation according to current customer structure and forecast
    • Survey on potential 3PLs
  • Project (Phase II – 12 working day Facilitation to 3PL selection)
    • Evaluate service requirement
    • Clarify criteria window
    • Prepare RFI
    • 1st round interview
    • Group selection
    • Prepare RFP
    • 2nd round interview
    • Last bid
    • Contracting


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