Spare Parts Operation Recovery

Our customer's client is specialized in telecommunication equipment. For the spareparts operation of these companies, this meant a worldwide integration of all supply chain processes. The enormous complexity and volume growth created a situation in the GDC characterized by:

  • Backlog on inbound
  • Backlog on the outbound department ( the export backlog was 60.000 shipping units)
  • A service level drop of below 50%
  • Stock accuracy below 90%
  • Lack of warehouse capacity, which resulted in the rent of 5 additional warehouses.

Assignment

The assignment for the interim recovery manager was to stabilize the operational processes and to improve the overall performance.

Approach

The following steps have been taken:

  • Implementation of new operational processes
    • Integration of the different warehouses
    • Organize processes on the existing volumes
    • Organize processes to integrate the various product flows
  • Implementation of effective reports:
    • Operational dashboard
    • Export monitoring tool
    • Problem issue report
    • Management productivity tool
  • Implementation of an integrated order flow management system for the export office department.
  • Implementation of a WMS for export shipments.
  • The development of a blueprint for the operation of a new warehouse

Results achieved

98%
Service Level
nil
Backlog Inbound
nil
Backlog Outbound
99%
Stock Accuracy