SCALA CASE STUDY
Post- Acquisition – Supply Chain Re-Organisation
B2B Office Products Supplier
Background & Brief
This Private Equity group who already owned a major national supplier of “Business to Business” office supplies had acquired another similar company. However, anticipated expectations of being able to achieve significant synergy benefits had not been achieved and at the same time considerable upheaval to previous working arrangements had resulted in customer service issues. SCALA were called in by the Private Equity group to work with the companies to establish and quantify an achievable synergy strategy to meet customer service levels.
Project Approach
The SCALA evaluation was undertaken in close co-operation with the management teams and incorporated a wide range of aspects included and challenged a wide range of key factors :-
Product Range Rationalisation
Optimised Inventory Levels
Existing Warehouse Storage & Operating Capacity Capabilities
Depot Network Infrastructure Optimisation
- Regional v Centralisation v Customer Focussed Warehouses
- Transport Optimisation
- Customer Service Offering & Order Lead Times
Benefits & Results
SCALA Identified for the client an optimum “end solution” with a “roadmap” for achieving the changes whilst minimising risks to the business.
Plan for utilising existing warehouse locations but allowing some to be disposed of
Annual warehouse change plan in line with lease terms and including operational improvements
Product Range and improved Inventory Management
Resources planning
Annual Cost Projections
Final Outcome
The project concluded that operating cost savings per annum of £4m were achievable and inventory reductions in operating capital of £7m
