Global 3PL Provider

Libra Europe implemented a comprehensive 'One Improvement Plan' for a global 3PL provider, achieving cost reductions and enhancing service levels, leading to a strengthened customer-provider relationship.

Background

Global 3PL provider with a site based in North-West England. Their customer is a UK Leading Plumbing and Heating provider.

Challenge

The customer required the provider to reduce supply chain costs; and improve several service levels therefore at breach of contract.

Libra Europe were tasked to create 'One Improvement plan'; for the site in addition to conducting an analysis into current operational process pain points and identify further opportunities.

Solution

Libra was selected primarily to provide neutral and fresh eyes to the issue; deploy a structured methodical approach, at pace whilst generating fresh ideas; this was to compliment and re-enforce a two-phase plan initiated by the 3PL, with Libra being responsible for Phase 2 ‘Sustainable Improvement’ and tasked with bringing all plans together into ‘One Improvement Plan’.

The issues could be attributed to 3 key areas, System, Change Management and Transitioning of Operation.

An analysis was required to understand root cause of performance level; questions such as “What existing operational processes drive the KPI’s?” and “What are the main pain points in these processes?” were asked; this generated a results plan comprised of short- medium-term improvement actions along with delivery timescales.

Libra developed and supported the embedding of a robust governance structure using an initial Libra-Led-to-client-led transition, empowering department leads with both ‘Strategic’ and ‘Continuous Improvement’ plans. In addition, facilitation was provided to specific highlighted improvement areas such as MCRS, Forecasting & Resourcing, WMS/System, People & Engagement and most notably, ‘Discrepancy Root Causes’ where a short-term containment measure was put in place; immediately impacting discrepancies, developing a longer-term solution strategy for discrepancy eradication. In doing so, Libra reduced site overspend from 44% to 3% vs Budget, in addition to monitoring and maintaining key contractual service level target.

Libra transitioned the full, structured, improvement plan over to the client, allowing them to take ownership of the next phase of amelioration strategies.

Results

Through engagement with key stakeholders, a 'One Improvement Plan' was established, consolidating all active projects related to the site at both local and central levels. A Programme Governance structure was defined and set up to monitor progress and benefits. An independent analysis identified additional areas for enhancement, leading to benefits of approximately £1.1m, in conjunction with the quantification of ongoing initiatives. By fostering a close working relationship with the site team, site overspend was dramatically reduced from 44% to 3% against the budget, whilst ensuring key contractual service level targets were met. This also paved the way for stabilising relations between the customer and 3PL, ensuring the contract's retention by the provider.