Client Results

Warehouse and Supply Chain Improvement Project
HRV

Overview

In 2018 HRV discovered some challenges in the supply chain. Several key people had left the business following a sale to Vector and it was evident that there were challenges in the warehouse, inventory control and procurement. Henry was engaged by Vector to assess the supply chain and then to provide help to deliver the improvements.

At a glance
  • Introduced inventory controls to reduce stock take variances from $1.4 million p.a. to zero for the 2020 Year
  • Consolidated manufacturing and warehousing from 2 facilities into 1
  • Set up a supply chain structure to manage procurement, warehousing, planning and operations
  • Led the recruitment and development of key people in the new structure
  • 1 year on the Supply Chain is delivering ongoing savings:
    • Procurement > $1 million
    • Labour $235,000 p.a
    • Warehouse costs $215,000
  • While Inventory value has reduced by 20% and service has improved from 100 sku’s out of stock to less than 15 at any one point, (out of 1000+ sku’s)
Capabilities Deployed
  • Current state assessment and design of future state structure, processes and tools
  • Coaching and training to set up cycle counting, root cause analysis and process design for inventory controller
  • Introduction of best practice warehouse design and stock take processes
  • Network design to consolidate manufacturing and warehouses into 1 facility
  • Introduction of basic planning tools and processes to manage purchasing and manufacturing

 

“Henry was instrumental to identifying issues and opportunities, and then working with us to facilitate exceptional outcomes”

Colin Daly Chief Executive
HRV 

Contact us to get started now

Complete the questions below to test your data maturity.

Over the next two years, which three of the 14 key performance indicators do you most want to improve on as a business?

Make a note of these before you carry on reading.

The key 14 performance indicator categories:

Productivity

  • Asset & equipment efficiency
  • Inventory efficiency
  • Materials efficiency
  • Utilities efficiency
  • Workforce efficiency

Flexibility

  • Planning & scheduling effectiveness
  • Production flexibility
  • Workforce flexibility

Speed

  • Time to market
  • Time to delivery

Quality

  • Product quality
  • Process quality
  • Safety
  • Security

Now ask yourself – what is your current performance against these three KPIs? Can you tell me how you performed in the last hour, yesterday or last week?

If you can’t answer this question for all three because you aren’t measuring the data, then the next step is clear. Figure out what data you need to enable you to measure it, and decide how you are going to collect that data.

If you can answer it historically; last week or last month – ask yourself, is this retrospective view sufficient for me to really make improvements?

If you can answer it for all three up to the minute, then it is quite possible that shopfloor intelligence isn’t a number one priority for you. Look out for parts 2 and 3 of this blog series for some more insights into how you can make the data work for you.