Integrated Supply Chain Transformation Program Delivery

Led procurement and supply chain transformation, delivering $200M+ benefits, $15M savings in year one and integrated SAP-enabled operating model.

Client Overview

A state-owned water utility responsible for the provision of potable (drinking) water and waste water services for over 6 million people.

Challenge

The utility had had a fragmented Procurement, Supply Chain environment with divergent operating models and compartmentalised accountability. This required a fundamental shift in the operating model and the integration of its component parts.

Solution

A Maestro led design of the organisational operating model and transformation program. In this, an integrated Supply Chain was deemed a key enabler of the future strategy realisation.

  • Design and implement an integrated Supply Chain operating model with supporting organisation structure and role design.
  • Developed the functional strategy to enable an integrated Supply Chain.
  • Developed the business case which identified in excess of $200M in benefits.
  • Developed the detailed program to deliver the benefits and outcomes
  • Development and design of the Supply Chain aspects of SAP S4/Hana program
  • The Supply Chain operations sub-program included materials & inventory management warehouse management and network design (2 warehouses, 11 depots & 33 site stores)
    • A project within the Supply Chain operations sub-program was the Materials identification program. This identified in excess of 9000 new SKU and over 36,000 items (critical spares & major items) and more than 100 cubic meters of breakdown spares and consumables.

Results & Impact

This fractional role was led by one of our Maestros.

  • Procurement and Supply Chain operations and organisational design implemented.
  • Benefit delivery of in excess of $15M (capitalised inventory write-back) made the total program cost neutral within the first 12 months of the 3-year program.
  • The identification of over 9000 new SKUs (not in systems) representing over 36,000 items (critical spares & major items) and more than 100 cubic meters of breakdown spares and consumables which were catalogued and made available to the organisation to utilise.
  • Procurement and Supply Chain technology transformation commenced
  • Infrastructure Delivery model transformation commencement (Partner4Success, which also received industry awards)

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