Construction

Construction Materials: Accelerating outcomes in 8 weeks

The Challenge

Inventory levels at an all-time high, despite frequent ‘stock-outs’

Sales performance below budget

Customer satisfaction in downwards trend

Challenging market conditions

Our client, a leading provider of construction materials, had embarked on a series of performance improvement initiatives. These included introducing a new ‘hub-and-spoke’ operational structure, implementing a new inventory management system and making a series of people changes. However, historically the organisation had struggled to effectively embed changes, local performance was inconsistent and overall performance was below budget.

The Results

44% inventory reduction opportunity proven

Generated 35% additional capacity for high-turnover items at pilot site

Improved availability of products, improving customer satisfaction

Inventory analysis and rapid planning completed in 8 weeks

44%

Inventory reduction opportunity proven

Arca Blanca led a fast and detailed analysis, bringing together data from all systems to create a true view of sales and operational activities. This demonstrated potential for significant inventory reduction. We then created a roadmap to achieve these reductions, which would also improve performance and provide better customer service. A new local operating model and maturity framework was designed to enable the client to keep improving performance.