Clear processes across Supply Chain secured better service to customers
Lack of documentation, standardization and overview were at the root of the poor conditions for performing service tasks in a large industrial company - but it remedied by a pragmatic analysis that lead to practical and tangible solutions.
Transparency and clear processes across the Supply Chain have proved crucial for one of kaastrup|andersen's customers in the industrial segment. The company has entered a new business area, offering service contracts for products (machines) that have not been produced and delivered by the company itself. But the 'foreign' products require other technical skills and other spare parts than the company's own. The necessary knowledge about the products already existed in the organization, but was not visible or accessible.
The company experienced a great need for overview and transparency in processes, roles and responsibilities, both in the service area, but also across the entire value chain, as a number of other functions - such as sales, finance and procurement - also play important roles when the service technicians perform their work.
Read the whole case and get an insight into how the company's service business was strengthened.
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Challenge
When the company's technicians faced a service task, they often lacked technical work instructions, spare parts, and special tools. This was because the relevant documentation on the 'foreign' products were not available, and it was difficult for the service technicians to find out which colleagues would be able to help with advice and knowledge. Often the relevant information could be found in other units in the organization, but without transparency and structured knowledge sharing, this was not used.
The lack of information in the Service department had repercussions in other areas, and meant that often the spare parts warehouse could not provide the needed spare parts – or had an excess of spare parts that did not come into use. The many uncertainties meant that the service tasks risked being delayed or, in the worst case, cancelled, so that the contractual obligations to the customers were not complied with. The service technicians used excessive time on the tasks and experienced on a daily basis great frustration at being unable to perform their duties satisfactorily.
Solution
The company and kaastrup|andersen set out to analyze and map the various work situations and processes, thereby creating an overall overview of the many challenges in relation to the service tasks on the 'foreign' products. Scope and impact of each challenge was assessed, and the expected impact of one or more solutions for each challenge were defined.
In short, the analysis provided a comprehensive overview of the hurdles and pinpointed the optimal places to put resources in order to streamline and standardize business processes, and how it can be done. The overview and transparency created by the analysis also provided momentum to the clarification of the roles and responsibilities in the organization, which has the created a sound basis for knowledge sharing.
Result
Overview and standardization have created the foundation for the company to provide better service to their customers, on time and with the promised quality. The Service business has become more profitable, as both wasted time and purchases of wrong spare parts have been minimized.
The project has also created a basis for a 'go-to guide', provided an overview of the organization's set-up and strengthened the collaboration across the company's many regional business units.
kaastrup|andersen was responsible for both project management, analysis and solution development.
Is your company able to create transparency in the Supply Chain? Do you have an overview of the challenges that arise in the Supply Chain? kaastrup|andersen has extensive experience with optimizing the Supply Chain, and you can read more about what we can do for you here.
If you want to look at how transparency in the supply chain can help your company, you are also always very welcome to give Lars Glowienka a call on +45 7027 7719 or send an email to lgl@kaastrupandersen.dk
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