Supporting a newly designed European Distribution Network

Supporting a newly designed European Distribution Network, combined with the selection of a new 3PL.

Assignment

We were requested to co-lead and manage the implementation and transformation of Client’s newly designed European Distribution Network, combined with the selection of a new 3PL that manages the full European Distribution Network.

Prior to the implementation and transformation project we conducted for the client the Network Design Study as well as the logistics procurement project to select and contract the preferred single European Logistics Service Provider (LSP).

Project summary

Client is a Japanese manufacturer of electronic office devices. We conducted for the Client a distribution network optimization study which led to changing the network from 5 distribution centers in Europe to a set-up with one Centralized European Distribution Center in South of the Netherlands, combined with 2 satellite warehouses in Italy and Spain and a technical center in Germany.

The change of the network, combined with expiring 3PL contracts offered the opportunity to also search for a new 3PL. The logistics procurement project, conducted by BCI, led to change to one single new 3PL that will operate the full European network, including transportation management and a control tower function for end-to-end visibility and control.

Our approach

BCI fulfilled 3 key roles in the transformation and implementation initiative over the course of 16 months:

  • Project management
  • Transformation and change management
  • Subject matter expertise

In the Project Management role we fulfilled the below functions:

  • Planning: Establishing the project goals and objectives, creating a detailed work plan, and identifying the resources needed to complete the project.
  • Scheduling: Establishing the timeline for the project, assigning tasks to team members, and managing the timeline to ensure the project is completed on time.
  • Progress management & control: Keeping track of progress, identifying gaps and risks, adjust and interfere, escalate if needed
  • Communication Management: Regularly communicating with stakeholders and team members, resolving conflicts and issues, and keeping the project on track.
  • Risk Management: Identifying potential risks and developing strategies to mitigate them.
  • Quality Management: Setting quality standards, monitoring the project to ensure quality is maintained, and taking corrective action if necessary.
  • Documentation & reporting: Creating documents to track the progress of the project and keep stakeholders informed.

In the Transformation and Change Management role we fulfilled among other the below functions:

  • Establish clear goals and objectives for the project and the sub-projects.
  • Develop a change management plan and ensure the organization is equipped to manage the change process.
  • Communicate the change through various meetings structures on all levels of the organization
  • Co-Lead and support step by step changes
  • Manage Resistance and getting on track again.
  • Monitor progress and continuously evaluate progress, outcomes and success.

In the Subject Matter Expertise role we fulfilled among other the below functions:

  • Integrated Supply Chain and Logistics processes design
  • Functional requirements definition as input for IT functionalities development
  • IT systems testing, including creation of the test plan, functional testing, systems integration testing, end-to-end testing, user acceptance testing and smoke tests
  • Training material development & training of workforce
  • Logistics procurement and contract finalization including detailed SOW, SLAs, KPIs, liabilities, cost, etc.
  • Billing and cost control; validate billing is in line with the commercial proposal
  • Pre go-live auditing and go/no-go decisions
  • Hypercare during start-up and volume ramp-up   

Result

The project was successfully implemented across all operations in Europe. After an agreed period of hyper care the LSP reached the contractual agreed service levels and KPIs. The projected annual savings were almost reached and a culture of pro-active continuous improvement ensures a further improvement of services and costs in the future.