Enhanced safety culture and operating management systems drives improved management control.
This story is for CEOs and PE firms who:
- Have poor supply chain and operations visibility and control across multiple business units due to acquisitions without true business integrations
- Are struggling with poor forecasting, capacity constraints, operational knowledge and a weak safety culture
- Need help gaining insight, control, driving cultural change and sustainable supply chain improvement fast
The challenge
This leading fuel and lubricants (bulk and packaged) distributor had grown through acquisition and was facing challenges with poor visibility, a lack of consistency and metrics across business units. It also had safety concerns and was struggling with warehousing capacity constraints in a challenging market environment.
Having carried out due diligence on behalf of the private equity firm that acquired the company, the PE firm and the new CEO approached Maine Pointe for help regarding post merger integration. More specifically they needed assistance developing and installing safe practices and a Management Operating System as a basis for a common and standardized approach across multiple business units. All this while maintaining customer service levels, and identifying opportunities for improved performance and reduced costs.
Accelerating the implementation of a new management operating system, culture and way of working
Carrying out a detailed analysis across the business, Maine Pointe’s experienced SMEs assessed the operations on the ground. By combining this with leading inventory and route optimization analytics tools, the team identified significant areas for improvement across their management, reporting, safety, logistics and warehousing operations.
Maine Pointe then worked closely with the client to develop a comprehensive and pragmatic journey for rapid improvements. The Maine Pointe team developed a structure and process to drive benefits through a series of workstreams that included change management, coaching, training and the installation of a new Management Operating System. More specifically in the following key areas:
- Developed cross-functional teams that were highly engaged and participated in development and implementation ofnew processes and tools
- Implemented an enhanced new safety culture across the in-scope warehouse and logistics organizations
- Designed and piloted a common company Management Operating System for warehouse and logistics at the major locations which can be extended to other divisions and to new acquisitions
- Improved performance and lowered costs of operations (warehouse and logistics) via improved processes, standardized work, improved warehouse layouts and practices, and optimized packaging routes, while improving customer service levels and experience
- Implemented a digital Control Tower giving the CEO visibility and control using the new Management Operating System
The Results
Maine Pointe helped our client achieve the following results in a challenging environment:
- Improved safety, forecasting, management visibility, KPIs, management operational knowledge and inventory control as part of the new Management Operating System
- Developed and implemented an enhanced safety culture
- Implemented a Logistics Management Operating System complete with a library of tools and training
- Developed and optimized warehouse layout (including racking plan) and slotting, developed tools and trained personnel
- Developed a common cross-functional and cross-organizational approach
- Enhanced the logistics maturity of people, processes and capabilities
- Identified savings opportunities in labor and asset utilization
Lessons learned for other executives
- Garnering external help to help drive functional and cultural silos is often needed to accelerate cultural and operational change
- Data analytics is critical to enhancing visibility and control across multiple supply chain and operations
- You can improve the performance of your supply chain and operations in the light of high inflation, labor and parts shortages