Reorgnising distribution in the wake of SAP implementation
The Situation
Following the runaway implementation of SAP e-WM resulting in increased costs and decreased delivery performance, the company decided to redress the situation by attracting a strong supply chain director with specific expertise in the healthcare distribution
A one year period was put forward to redress the situation
A one year period was put forward to redress the situation
The Solution
A member of the WIL Group put forward an Interim Manager with all-around experience in healthcare supply chain management
The priority list of actions consisted of:
The priority list of actions consisted of:
- To reduce the backlog to zero, at all costs
- To simplify the complex procedures as implemented in SAP e-WM
- To re-structure the warehouse and distribution organisation
The Result
The backlog was reduced to zero within a few months, but with a major increase in personnel costs to get the orders out to the customers.
Next, the ways of working in the distribution warehouse were simplified again, and simultaneously implemented in SAP, resulting in a drastic reduction of the direct headcount.
A new organisation chart was designed and completed with the right people in the right places and new people were hired with the right competences wherever there was a need.
The assignment is still on-going and is focused on the continuous improvement of the ways of working in order to further reduce the costs.
Investments are only approved with a RIO of less than one year.
Next, the ways of working in the distribution warehouse were simplified again, and simultaneously implemented in SAP, resulting in a drastic reduction of the direct headcount.
A new organisation chart was designed and completed with the right people in the right places and new people were hired with the right competences wherever there was a need.
The assignment is still on-going and is focused on the continuous improvement of the ways of working in order to further reduce the costs.
Investments are only approved with a RIO of less than one year.
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