Supply Chain Improvement Planning - Case Studies

ScottMadden worked with a large electric utility to develop a strategic direction and detailed improvement plan for their supply chain organization.

The client had recently reorganized its supply chain operations to create a centrally led organization. Supply chain personnel related to purchasing and materials management were reassigned to the central supply chain organization to be managed on a shared services basis
ScottMadden was retained to help develop a clear strategic direction for the supply chain organization, create an appropriate organizational design, identify areas where significant annual cost savings could be achieved, and prepare an 18-month plan for supply chain improvement

Facilitated a series of planning sessions with the supply chain executive and his direct reports
Developed planning assumptions and reviewed an inventory of current initiatives, which resulted in developing a clear vision for the future and identifying opportunities for cost savings
Identified specific change initiatives that could be undertaken during the following 18 months and scoped each initiative in terms of impact and required resources.
Presented the strategy, organizational design, and implementation plan to the company's senior executive team and obtained approval to proceed with implementation

A prioritized set of initiatives was established
The client team agreed to a shared common vision for the future of the new supply chain organization
A medium- and long-term organizational design was implemented
A detailed 18-month improvement plan was designed and approved by executive management and the appropriate resources were allocated for implementation

SM199