World-class Inbound Supply Chain Performance

A rail organisation needed to improve the performance of maintenance materials management to support on time network infrastructure maintenance to ensure on time passenger trains, especially during peak hour periods. A series of improvement initiatives were designed to address the supply chain issues preventing the achievement of world-class supply chain performance targets.

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Industry: Transportation, Maintenance, Services, Manufacturing (Fabrication), Construction, Wholesale, Retail, Services

Project: Supply Chain Excellence Program

Company: Company specialising passenger transportation by train

Issues: Inefficient materials inbound supply chain causing delays to network infrastructure maintenance impacting on-time running of the trains.

Key Requirements: Identify how to improve and sustain world-class maintenance materials management to ensure the materials supply chain achieves world standard performance targets for supply chain reliability, responsiveness and asset management efficiency.

“Sharyn led a project in my workplace to pull the supply chain apart in an analytical sense, measure performance, compare performance to international benchmarks, and then to develop solutions/ improvement projects to close the performance gaps. She was organized, knowledgeable, focused and adaptive. Her work has been pivotal in us understanding why we perform as we do and how we can make lasting improvement using the SCOR model and Supply Chain Excellence framework.”Senior Manager Supply Chain

Outcome: Identified significant opportunities (at strategic level and down to root cause level) to improve supply chain performance to world-class standards, from suppliers, to inbound freight to internal warehousing to internal maintenance customers. The supply chain improvement initiatives were designed to:

  • increase in Delivering Materials In Full On Time
  • reduce Order Fulfilment Cycle Time
  • reduce Inventory Days of Supply
  • reduce Excess Inventory
  • increase Inventory Turns
  • increase Inventory Record Accuracy.

What we did:

  • Led the Supply Chain Excellence Program Team through the Program Phases.
  • Phase 1 Build Support: Established the Steering Committee & Project Team. Established Broad Project Approach. Created awareness and support to improve supply chain performance to best practice standards.
  • Phase 2 Define Project Scope: Established context for Supply Chain Improvement. Agreed Strategic Supply Chain Performance Priorities. Prioritised 13 Supply Chain Segments to Improve. Agreed Project Scope. Established Project Management Plan & Schedule.
  • Phase 3 Analyse Performance: Held staff training in SCOR (Supply Chain Operations Reference Model) best practice supply chain management. Held staff training in Supply Chain Excellence Methodology. Introduced greater Supply Chain Performance Measurement granularity at Strategic, Diagnostic and Root Cause Levels Per Supply Chain Segment. Conducted benchmarking using APICS Supply Chain Council SCORmark Benchmarking service. Established a Supply Chain Performance Scorecard and Targets and identified performance gaps. Conducted DIFOT Pilot Test which led to measuring DIFOT for the first time. Conducted in-depth performance analysis which led to a greater understanding of the causes of supply chain failures and a greater understanding of the data that is used and required to measure performance. Measured Freight Performance for the first time. Identified the supply chain processes causing supply chain failures and preventing performance measurement.
  • Phase 4 Develop Project Portfolio: Mapped the Supply Chain Network Material Flow. Created a Supply Chain Network Process Architecture. Conducted an in-depth Metric Defect Root Cause Analysis which identified 130 supply chain issues causing supply chain failures. Mapped 9 High Level Future State Supply Chain Processes. Identified 15 Supply Chain Projects to resolve supply chain issues, close performance gaps and data gaps. Produced a Prioritised Project Portfolio giving priority to the projects with the greatest impact that require the least effort. Conducted DIFOT Target Assessment & Process Resourcing Analysis.
  • Phase 5 Implement Projects: Developed 8 urgent Supply Chain Standard Operating Procedures; held staff training; commenced development of the Supply Chain Policy. Handed over the project for in-house implementation of improvement initiatives.

By: Sharyn Grant - See all Posts by this Author