Geti

SITUATION

Our Client is one of the largest building material companies in the world. Headquartered in Europe, the Client has a significant presence in Indonesia.

In an effort to increase its competitiveness, our Client enlisted the help of CEL Consulting to identify ways to increase their market share while maintaining a reasonable level of profitability.

CEL Consulting joined with the Client to support this initiative and lead a supply chain and operations improvement project aimed at reducing distribution cost and increasing product availability.

 

PROBLEM

How can we increase our competitiveness by reducing distribution cost while increasing product availability?

 

APPROACH

  • Audit Client supply chain using SCOR defined performance standards

  • Compare growth in the cement market versus Client shipping capacity

  • Analyze capacity bottlenecks and their effect on logistics cost.

  • Analyze variability at jetties (due to unreliable loading/unloading performance), and its effect on vessel scheduling and routing

  • Analyze the effectiveness of existing supply chain planning process. Developed Sales & Operations Planning (S&OP) process to improve supply chain planning.

 

RESULT

We helped our Client by

  • Identifying and implementing programs to save more than 3 Mn USD per year in distribution cost by

  • Identifying and implementing programs to overcome capacity limitations and increase product availability

  • Deploying the S&OP process and aligning business strategy with supply chain planning

  • Establishing organization-wide supply chain KPIs and instituting mindset of continuous improvement.

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