The interim manager was hired by a measuring device manufacturer to integrate the supply chain across the company following the vertical integration of a measuring service provider. He was tasked with implementing a digital supply chain. 5 years previously, the interim manager had successfully restructured the strategic and operational purchasing for the manufacturer following a relocation and a site closure.
The project assignment for the digitalization of supply chain management comprised a total of 30 branches with 714 items (501 of which were purely merchandise) and around 300 orders per day, as well as the central functions of the measurement service provider. The start of the project had already been postponed twice. Now the interim manager was to ensure the go-live within 3 months.
Clear project structure plan with responsibilities, tasks and schedule defined
In order to achieve the ambitious goal, the interim manager installed a function-oriented structure with 5 main areas. Under each of these, 4 - 5 individual topics with responsibilities were arranged and prioritized.
- The previous project manager took over coordination with the 30 branches. His area of responsibility included training for the processing of orders and returns as well as the requirements for the new front end and the billing modalities at the branches.
- The interim manager was responsible for the area of articles with article selection, change management, catalog creation, logistical procurement and delivery models as well as suppliers. In order to determine the logistical procurement and delivery models, he carried out a statistical analysis of all articles over the last 24 months in order to obtain uniform specifications for procurement and production as well as for the presentation of availability for customers.
- The IT area was handled by an external service provider. Here, the interim manager managed and coordinated topics such as the SAP customer cockpit, interfaces to end customers, billing with the head office and end customers. Other tasks in this area included the provision of data for the end customer front end and extended returns management.
- The client's purchasing manager was responsible for the purchasing/logistics area, which involved taking over the warehouse, taking over existing suppliers and connecting to SAP MM.
- The previous project manager and the interim manager jointly managed communication with the stakeholders in both companies.
Digitalized supply chain goes live on schedule
The clear project structure and regular progress monitoring as well as a strong exchange of information between all those involved contributed significantly to the go-live being realized after the planned 3 months. Even in the first month, the average time for order confirmations was 6 hours. Over the course of 3 months, this figure was improved to less than an hour, with 40 percent of orders being processed fully automatically. As a result, 2 employees in the internal sales department were able to process the same number of order items that previously required 6 employees.
Compliance with promised delivery dates increased to more than 98 percent
After 3 months with the digitalized supply chain management system, 82 percent of orders were delivered from stock. The remaining 18% were procured or manufactured to order.
After 3 months, the availability of items in stock was 96%. Compliance with the promised delivery dates increased to more than 98% during the project period.
