Improving supply chain processes to deliver £750,000 in cost savings

An aerospace manufacturer with sales of £35m had recently merged two businesses and needed to improve operational effectiveness and reduce costs.

Core Partners carried out an end to end supply chain assessment to establish the effectiveness of existing processes and recommend opportunities for improvement. This assessment identified that the recent merger had disproportionately increased complexity within the supply chain, and many areas now needed to be reviewed and standardised.

Initial assessment workshops led to several specific projects including; a detailed purchasing savings plan, delivery and procurement process improvements, and an improved sales and operations planning process. The end to end assessment developed a supply chain road map which defined a 3 year business vision to deliver significant improvements. Current performance was benchmarked, and opportunities to reduce non-value added purchasing activities were identified. Material availability was significantly improved, and cost focused commodity sourcing introduced.

A series of quick wins were also achieved, which significantly improved throughput, productivity and customer services. The purchasing project also identified and planned future savings of £750k.