Capacity expansion plans had been going on for 2 years with internal recommendations to invest in a new 10,000 square metre warehouse. In the first phase, the client sought verification on two important regional warehouses.
It was recommended externally to postpone investment in additional storage capacity for at least two years. Analysis showed that reduced turnover over the previous 7 years in several areas had created a need for more capital in the business. Therefore consolidation would be a better solution and the second phase was set in motion.
Thorough preliminary analysis it illustrated that it could be simplified in several areas. These were within order and purchase processes, transport and logistical processes and an adjustment in the form of organisation in all areas both centrally and locally.
In the third phase, a project was undertaken with a design on solution options and a development process with a potential to save 50m DKK.
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Our client is a large German international enterprise dealing in systems for the construction industry. As a new CEO came on board a new strategy was launched with the focus on, amongst other things, simplification and to increase income. At the same time, there was a central investment desire to expand and incorporate greater storage capacity in Germany. The Vice Chairman for the business area had a gut feeling and wanted this requirement to be confirmed.
THE BOTTOM LINE
