Levi's - Design & Modeling
Request
Levi’s called upon the services of LHC Consulting to improve their current logistics network of distribution centers and distribution management in Europe. The objective was straightforward: to decrease logistics costs while maintaining current service levels.
Approach
LHC started with a ‘Greenfield’ situation: designing the optimal distribution structure, demonstrating a clear European allocation plan, required DC sizes and orientation (client, geographic or product). The outcome was compared with Levi’s actual situation. Gaps were identified as well as possibilities for closing them. Levi’s executives approved the suggested migration plan and fully supported the implementation.
Results
The project resulted in a prioritized closure of distribution centers as well as a reallocation of products across remaining distribution centers, an enhanced service level to retail stores and substantial annual cost savings.
Wessanen - Scan & Diagnose
Request
LHC was hired to identify synergies and make improvements in the supply chain processes and expenditures. In order to safeguard ownership and implementation, the project was performed in close cooperation with company experts.
Approach
A pan–European scan was performed for six different sites. LHC mapped and assessed the local supply chain processes, diagnosed local areas of improvement and identified cross-company synergies. Also, the fit with the “to-be” situation as set by local management was linked with the long-term strategic direction of Wessanen management. Finally, the quantitative information (inbound as well as outbound) was methodically analyzed and quick gains were identified.
Results
The Scan & Diagnose led to substantial savings, a clear insight in the as-is situation for the different sites, plus a supply chain roadmap describing the necessary improvements to reach the optimal to-be situation. In addition to these quick gains, the project led to a cross-company tender with a clear strategic procurement cycle.
Helly Hansen - Procurement
Request
Helly Hansen called on LHC Consulting’s services in order to reduce the freight costs of all transport to and within Europe, by means of a tender process.
Approach
A benchmark analysis of Helly Hansen’s current carrier contracts revealed that transport rates were not in accordance with market level. Subsequently, over 30 carriers were invited to participate in the tender process. All submissions were evaluated on the basis of quantitative as well as qualitative grounds and the effect of each submission was made transparent via a tailor-made impact calculation model.
Results
The project led to a double-digit annual cost saving, through a reduction and optimization of Helly Hansen’s supplier base. LHC delivered a tangible plan covering the total cost of operation, including contracting, carrier management plus carrier allocation.
Philips - Operational Excellence
Request
LHC was consulted to support Philips in its drive for operational excellence by designing a senior management performance dashboard. The dashboard identifies the performance of the different service providers and determines the focus of all parties, strengthened via contractually defined indicators.
Approach
LHC appraised the existing supply chain structure consisting of both National and European distribution centers, each outsourced to different service providers. A standardization of contracts was established in which a comparable tariff structure and a target-driven reward methodology were agreed upon. Finally, the dashboard was constructed and deployed in such a manner that the performance measurement on all essential elements was standardized and used to try to achieve operational excellence.
Results
The ongoing performance measurement and management process is controlled by Philips in cooperation with LHC. The dashboard is filled in locally on a monthly basis and consolidated into an overview for European management in order to track financial and operational implications. In order to enhance performance on a continuous basis, structural problems are identified and resolved via a PDCA cycle.