Libra’s Experience Streamlining Supply Chains
Last week we explored some potential risks and opportunities that Brexit poses to your supply chain.
Libra has considerable experience working on extended supply chain projects in order to mitigate risks and drive financial savings. Our projects have covered Europe, the Far East and central America across retail, consumer goods, financial services and construction sectors with clients that include Mastercard and Sainsbury's.
Below are some examples of work that Libra has completed in this field:
Brexit supply chain mapping
Libra previously conducted a Brexit impact study for a food manufacturing client, engaging with all relevant suppliers in order to provide a detailed review highlighting the risks to all materials post Brexit disruption.
Considerable risks were exposed as the client sourced only 2% of their goods from the UK and hence faced potential extra tariff costs of £500kpa in the case of a hard Brexit and extra transport costs of over £1mpa due to extra driver time required if the borders get backed-up.
A detailed action plan was created to provide guidance on each product; increasing stockholding, value engineering components out of recipes, switching or source secondary suppliers.
Follow up analysis and actions plans were generated to address the risks posed to the client’s labour supply.
Llamasoft Supply Chain Guru
Libra has partnered with Llamasoft; providers of a variety of software packages including Supply Chain Guru: “The industry’s most powerful supply chain modelling, optimisation and simulation software”.
The software models your entire supply chain and runs simulations for distribution centres, consolidation points, new branches and mapping of product flow.
Libra has previously applied Supply Chain Guru in order to reduce a client’s inbound transport costs by over 14%.
Libra has developed stock modelling solutions in order to define ideal stockholding of products to minimise stock whilst maintaining service level.
Effective application of these solutions and coaching the relevant behaviours have allowed us to remove stock worth tens of millions from our customers warehouses across multiple sectors.
S&OP and Procurement Management
Sales & Operations Planning (S&OP) is key to good planning for manufacturing organisations. Libra has helped several clients implement and develop S&OP in order to provide clear direction on what to manufacture and sell based on a balance between commercial targets, operational requirements and capacity planning.
Brexit could have a significant impact on supply chains by adding and removing legal requirements and can provide global opportunities for UK manufacturers. If you think that your supply chain could be improved and you would like to reduce costs or improve service, contact us today for a confidential chat about your business:
Written by Sean Pickering, Business Analyst in collaboration with our network of supply chain experts