Challenge
The Customer manages the SII (Integrated Water System – conveyance, distribution, waste water) over a provincial area with numerous offices and peripheral depots. The purchasing and logistics processes were lacking in cohesion and inefficient, with considerable problems in terms of management and profitability..
Intervention
An analysis of the business processes was followed by the identification of two lines of intervention to re-engineer purchasing activities and re-organise the logistics process.
- Re-organisation of purchasing office.
- Regulation and computerisation of direct purchases and agreements with local suppliers.
- Operational standardisation of peripheral offices.
- Identification of inventory levels for each material and computerisation of inventory management.
- Rationalisation of peripheral depots and setting up a tiered logistics system
Results
The closure of three peripheral depots has led to a reduction in rental costs. There has been a 25% reduction in stock value.
