Supply Chain Strategy Development and Alignment
ScottMadden has worked with a number of utilities to develop improved operating models for various functions. Contact us to learn how we can help support your operational effectiveness projects.
At a Glance
Supply Chain Strategy
The team created one clear enterprise strategy for supply chain management and identified opportunities to reduce costs through improved category and inventory management
Quick Wins
Identified five “quick wins” that made an immediate impact by streamlining work and reducing costs
Financial Savings
Implementation of the improvements for category management alone were conservatively estimated to produce recurring annual savings of $1.7–$2.8 million
Challenge
A large, midwestern investor-owned utility needed to improve its supply chain organization’s strategy, governance, and operations. Costs were high and the organization could not provide the strategic direction needed for efficient planning, sourcing, and materials management across the company. ScottMadden was engaged to help articulate one clear enterprise strategy for supply chain management which senior executives could support, drive, and monitor.
Process
- Formed an executive steering team of key leaders to champion the transformation process
- Assembled a small core team of key supply chain representatives and business unit customers and educated them on leading practices
- Utilized core team’s feedback to identify pain points in the organization, defined future state attributes to solve for pain points, and established roles and responsibilities between supply chain and business units
- Created an implementation and change management plan to transition and implement the recommended changes along with performance measures to help achieve the future state
- Assembled a development team and a new supply chain management model with policies, processes, and procedures designed to align supply chain operations with the new strategic direction
Result
- Created one clear enterprise strategy for supply chain management and identified opportunities to reduce costs through improved category and inventory management
- Identified five “quick wins” that made an immediate impact by streamlining work and reducing costs, all while establishing support for the supply chain transformation
- Implemented improvements for category management which alone were conservatively estimated to produce a recurring annual savings of $1.7–$2.8 million
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We don’t solve problems with canned methodologies. We help you solve the right problem in the right way. Our experience ensures that the solution works for you.