Construction Materials: Accelerating outcomes in 8 weeks
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.
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
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.
A thorough and fast-paced data-led review led to immediate improvements, with a clear roadmap to better decision-making, customer service levels and operational performance. This work was completed in 8 weeks and has set the organisation up for continued success.
Marco Mormone, Partner, Arca Blanca