PROBLEM
The company belonging to the construction industry was facing two issues within the distribution and production areas. One was the operational complexity of the logistics of production and delivery that encumbered swift decision-making, resulting in loss of confidence on the part of the clients, high order cancellation and thus, loss of sales. On the other hand, it was necessary to design and standardize better practices that could improve
operations under different business environments and working culture.
What they found in the company were operations for order entry, programming and product delivery with different modalities, presenting the
following problems:
- Receiving orders without considering the ability to deliver (product inventory, delivery resources, previous commitments for the required delivery time frame) causing failure to deliver and generating complaints among the customers.
- Isolated production and delivery operations, which had the potential to act synergistically to reduce costs and the risk of an inability to fulfill orders. The operation of each area followed its own indicators which, on occasion, generated conflicting incentives.
- There was a need to quicken the decision-making and execution process in a business where scenarios can change minute to minute.
SOLUTION
- We carried out a profound diagnostic to understand the cause of the problems, analyzing processes and practices, roles and responsibilities, indicators and incentives. This included following the operations and understanding the tools and information technology used to support the business, as well as the managerial and directive styles used.
- We designed a collaborative and multidisciplinary operations model (processes, incentives, communication, and indicators) that included tools to identify changes in the environment and to make decisions in minutes, reducing the apparent complexity of the day to day management of the business.
- An implementation model was designed to ensure and standardize processes and practices in the long-term.
- A business case was constructed which justified the economic benefits of the proposed design under the different scenarios where the model would be implemented.
- We documented the processes and practices in detail in order to make them easier to replicate and for them to remain sustainable for different business scenarios.
BUSINESS BENEFITS
- Productivity in delivery increased by 6%.
- Productivity of the distribution equipment increased by 7.8% (trips/day).
- Punctuality of deliveries increased by 19.8%.
- The routes, there-and-back, were reduced by 6.2%
- Operation costs were reduced by 250 thousand USD annually in the testing branch.
About Sintec
Sintec is the leading consulting firm focused on generating profitable growth and developing competitive advantages through the design and execution of holistic and innovative Customer and Operations Strategies. Sintec provides a thorough and unique methodology for the development of organizational competencies, based on three key elements: Organization, Processes and IT. Furthermore, Sintec has successfully carried out more than 300 projects on Commercial Strategies, Operations and IT issues with more than 100 companies in 14 countries throughout Latin America. Our track record of more than 25 years makes Sintec the most experienced consulting firm in this area of expertise in the region.
Ciudad de México: +52 (55) 5002 5444
Monterrey: +52 (81) 1001 8570 / 01 800 112 8570
Bogotá: +57 (1) 379 4343
Sao Paulo: +55 11 3443 7433