Supply Chain Transformation

Libra Europe optimised SIG's hub operations, leading to reduced costs, inventory efficiencies, and record sales.

Background

SIG is a leading European supplier of building and specialist construction materials. A £2.7bn company, SIG plays a critical role in the construction industry supply chain, ensuring that customers receive the right product in the right place at the right time.

Challenge

SIG had recently opened their largest ‘hub’ warehouse, with a turnover of £60m and the result of consolidating 6 legacy branches. However, the operation lacked business processes and systems to operate effectively.

Solution

Libra Europe were engaged over a 3-month period to address the legacy shortfalls in the original commissioning of the site. A previous operating model had been installed without engagement of the local management team and had subsequently failed. The team designed the ‘T1 Way’ operating model that ensured all revised processes and systems developments were clearly documented and a daily-weekly communications process was implemented. By fully engaging the site team, commitment and accountability to a more effective way of working was achieved.

Results

Inventory was successfully reduced by 25%, and the cost to serve saw a reduction of more than 25%. Concurrently, shortages decreased by 33%. Sales communication meetings were implemented, leading to the achievement of record sales.