water industry

Operational model transformation

20 M€ of productivity (15%)
Stock divided by 4 and 18 M€ of cash saving
2% of CSL, up to 98 %

Challenges

The Customer key challenge was to unlock new productivity levers in a context of strong business pressure.

To address this challenge, we broke silos between supply chain and manufacturing through an integrated approach :

  • Securing the business by improving the customer stock availability and visibility
  • Cash impact by reducing inventory levels
  • Cost efficiency by improving significantly the Direct Plant Delivery (delivery production adjusted to sales orders) and optimizing the change over time in the factories

Drivers

  • Shift from optimizing OEE locally to managing total COGS across the value chain
  • Model the operational constraints matrix
  • Evaluate the trade-off between changeover costs and logistics costs, including storage and primary transportation
  • Move from a Monthly/Weekly S&OP cycles to Daily cycles
  • Discipline in execution
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