ANNUAL REVENUE: 660M €
“We needed a fast operational turnaround during the allocation crisis.”– CEO
Supply Chain Task Force to steer the Business
Fast & effective decision-making and follow-through on a weekly cadence.
Throughput increase of more than 20%
Stabilised component supply & higher build plan reliability
Turnaround in Book-to-Bill and EBIT
Improved plant results. Increased the book to bill ratio. EBIT turnaround.
Needs and Challenges
Demand: Increased demand (2-3x). “Blind” commits. Customer escalations.
Supply: Component crisis, with key suppliers de-committing product supply, impacting build plans.
Processes: A new global governance model was not fully deployed when the crisis hit. Lack of consistent cross-functional management decision cadence. Impact: Decreased plant throughput. Quickly increasing backlog & inventory. Lack of clarity on basic rules, roles & responsibilities. EBIT below expectations.
“Supply chain task force” with weekly cross-functional management decision-making cadence.
Cleansed the demand pipeline (infeasible demand).
New Purchasing Operating Model: “War Room” to increase component availability. New category strategy with preferred supplier governance, weekly calls and multi source strategy. Build plan stabilisation.
Fast deployment of Sales, Inventory & Operations Planning (SIOP) and inventory reduction actions.
Benefits and Impact
- Fast & effective decision-making and follow-through: Weekly cross-functional visibility of performance, joint decision-making and follow-through
- Increased supply chain throughput: Improved throughput by 20% based on stabilised component supply & higher build plan reliability.
- Turnaround in Book-to-Bill and EBIT: Improved plant results. Increased the book to bill ratio. EBIT turnaround
The sust.biz Advantage
- We have deep experience about fast and practical operations improvement
- We are experts in building future-proof business operating systems
- We work ‘hands-on’ with clients
- We enable clients to structure their follow-up for success