Supply Chain & Ops Improvement
Even with the best strategy and people, companies may encounter circumstances where performance is suffering and they can’t seem to “get the laundry out”. Often, these problems can be traced to a failure of one or more of the supply chain linkages so critical to success in today’s highly-interdependent economy.
Maritime Management Consulting conducts operations and supply chain diagnostics, utilizing all sources of information about the client and the industry. Combining this with knowledge of best practice and keen understanding of the role of technology, Maritime Management Consulting is able to generate pragmatic improvement alternatives which can then be tested and implemented.
Maritime Management Consulting’s approach to Operations & Supply Chain Improvement relies on several key steps:
- Diagnostic – assess the current state of the business and performance gaps
- Design – create a competitive solution set
- Assessment – develop prototypes and test the alternatives
- Implementation – plan and deliver lasting change
Client Work and Other Experience
- Trade Exchange Start-up: For a trade exchange start-up in the nutraceuticals space, MMC led a team which evaluated the client’s business and revenue models, as well as helping select a portfolio of technology vendors/strategic partners. The analysis revealed significant problems with the revenue streams anticipated, causing the entrepreneur to radically restructure his business. Significant time and dollars were saved before they had been wasted on an untenable idea.
- Collaborative Knowledge Management: MMC drove creation of a Collaborative Engineering strategy for a manufacturing client to help them capture and manage knowledge, then disseminate it to internal and external customers. Follow-on tasks included functional/technical design of the supporting systems, vendor selection and implementation. To date, the client has realized lower costs for product engineering and customer service (10-20%), a 5-10% increase in revenues, and faster information flow back to their customers.
- Facilities Maintenance: For a large US metropolitan transit agency, MMC led an effort to redesign their facilities maintenance scheduling processes. Beginning with analysis of their existing processes, the root causes of service delivery and cost overrun problems were identified. Recommendation for new process and technology solutions were implemented, resulting in more work achieved for the maintenance dollar expended, as well as reduced frustration on the part of the agreement personnel being scheduled.
- Fleet Planning: MMC led an initiative to re-cast the fleet planning process for a major US airline, as part of a broader initiative designed to reduce operational costs. After benchmarking the processes in use at other transportation companies, recommendations were made which, when implemented, reduced costs, improved operations and achieved greater return on capital invested.
- Operations Audit: For a major manufacturer of coated fabric for industrial and consumer applications, MMC conducted an operations audit to recommend changes to improve product delivery and customer service. Recommendations for process change and improved planning tools were made and adopted, leading to on-time shipments improvements of 30-40%.
- Shipyard Assessment: For a Middle Eastern government, MMC conducted an assessment of their national shipyard, examining both strategic and tactical steps to move operations to a profitable basis and create positive value. Recommendations included new product developments, changes in operations and modifications to the overall business model; when implemented, they resulted in a return to profitability within 2 years.
- Asset Management: For a major container shipping company, MMC conducted an analysis of their container fleet planning. The company was plagued with uneven availability of containers at certain ports of call; extensive analysis revealed the problem to be multi-faceted, with considerable impact coming from excessive dwell on the landward side of the cycle. Results were used by the client to change the systems and procedures by which they tracked containers once they left the terminal facility, resulting in 20-30% of container assets freed up within the system.
- Inbound Transportation: For a US auto manufacturer, MMC led an effort to realign inbound transportation to facilitate a move to lean manufacturing. By examining various commodities and lanes, as well as evolving transport technologies, recommendations were made for mode optimization, as well as potential joint ventures between carriers. Estimated savings were in the range of $50-60M for five assembly plants, with attendant improvements in service delivery.
- Facilities Management Diagnostic: For a software firm serving the facilities management industry, MMC created a diagnostic tool and process to allow relatively unskilled client personnel to create a standardized profile of a customer’s requirements. This document then was used by the client development organization to drive product customization and implementation. Adoption of this tool reduced product delivery times by 30-40%, and also avoided extra cost from rework associated with misinterpretation of the customer’s requirements.
- Capital Budgeting: For a major automotive supplier, MMC led a team which examined their capital budgeting process and recommended changes to simplify and streamline their responsiveness to changes in their marketplace. A prioritized implementation plan was put in place, along with organizational changes and training for all stakeholders.
- Operating Strategy: For a short-line railroad in the Northeast, MMC helped the new owners develop a service design and operating strategy designed to preserve critical customer service while reducing costs. Customers were assessed from a profitability standpoint and appropriate rate/service policies adopted to ensure adequate return on capital employed. Non-performing assets and facilities were disposed of, and purchasing processes redesigned to ensure superior inventory management. Upon implementation of these changes, the line was able to post profitable operations within 9-12 months.