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
  1. Regional v Centralisation v Customer Focussed Warehouses
  2. Transport Optimisation
  3. 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
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