Contract Renewal viability assessment – OEM 1st Tier Supplier

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The brief:

In preparation of an impending contract renewal our client had identified a number of critical operational failings. We were asked to undertake a comprehensive review of existing operational functions and implement all the improvements required to ensure a successful contract renewal.

What we did:

The priority was to quickly build momentum, create rapid improvements and signal to all staff that the previous operational standards were no longer acceptable. By engaging front line staff in discussions on the best way of making the changes initial resistance soon dissipated. We undertook a comprehensive 5S review to reduce the impacts of overstocking, redesigned warehouse layouts, introduced controls at goods-in and receipting. Front line staff began initiating their own improvement ideas and staff morale improved beyond recognition.

The result:

Our actions helped our client to rebuild relationships and change the perception of their customer, who were also asked to undertake (and supported) a number of procedural changes. The contract was secured, improvement actions are now being delivered on a daily basis. Warehouse operations are better controlled; health & safety checks re-established and stock management disciplines improved.

“Steve supported us in quickly bringing control to the working environment and encouraged us towards our development of a continuous improvement culture. He was very easy to work with and enabled us to ‘see’ opportunities to help fix our struggling operation. The KPIs and analysis Steve gathered while on site have given us a strong footing to challenge the customer and target future improvements.”

General Manager