Portfolio rationalisation
BUSINESS CONTEXT
- 200m€+ Wholesale trade company in timber and building materials.
- 40 branches with local inventory for pick-up.
- 2 central DCs Low-cost strategy.
CUSTOMER NEED
- General manager wanted transparency in transportation costs and an agreed (shared) product portfolio.
- Cost reduction in internal transport.
- Working capital reduction.
- Clear supplier agreements.
RESULTS
- Reduced internal transport costs.
- Reduced number of portfolio items.
- 10% stock reduction.
- Better product availability.
CHANGES
- New integrated portfolio management process.
- Set of rules agreed between Operations, Sales, Purchasing.
- Implementation of a portfolio monitor-tool.
- New stock policy with central and decentralised items.
R&G APPROACH
- Opportunity data analysis.
- Variance-based metrics on margin.
- Various X-functional workshops.
- Coaching of operational leadership.