Process Improvement: Journey of a leading Logistics Firm
The client knew that to succeed in a technology-driven era, their order management and processing systems have to be much more solid and scalable. They turned to one of our senior consultant in the effort to improve their order management system.
The biggest challenge was that the client was not utilizing technology properly. Many processes were still being recorded manually, which meant that the data took a long time to be collected, recorded, and then to be analyzed to generate insights. Real-time data was also not available, and decisions can only be made after all the needed data had been received and compiled; this was holding the client back; they knew they could corner more of the market if they could automate most of their processes. The initiative addressed the following:
- Improve sales and operations and production planning
- Determine the right inventory level
- Optimize the supply chain for an improved order planning
The team came up with combined cutting edge technology. The key stakeholders knew that the systems had to be updated, and the real challenge was updating the systems without negatively disrupting the whole organization. An SAP workload management tool was implemented and the transition to the tool was done in phases to accommodate the need for employees to adjust to the changes in process; this allowed the workers to be more involved in the transition instead of feeling like they had been made redundant by technology.
The employees now feel more empowered; The client also has the benefit of generating reports instantaneously whenever needed. They can now make quick and well-informed business decisions based on the latest real-time data.
By the numbers, the effort:
- Reduced lead time by 43%
- Decreased variability by 50%
- Lowered the risk of back-order by 75%