Procurement Optimisation

About This Project

COMPANY

Large Industrial Manufacturer

DURATION

2 months

PROJECT

A large factory in Dubai had 58 buyers.  The buyers were not able to cope with the procurement requirements of the factory resulting in delays and stock outs and GapResolve was approached to assess the team and work out how many additional buyers were needed to be appointed to be able to cope with the procurement requirements of the factory.  A study was made of the ERP system and various training and process improvements were identified.

RESULT

The outcome of the study was that GapResolve did not recommend that any additional buyers be employed.  After implementing process improvements and training the buyers, marked improvements were measured after 6 months.  Although the number of buyers remained the same, their throughput increased by 10% (i.e. 58 buyers were now doing the work of 63 buyers) because the average deliveries per buyer decreased by 10% (from 1019 to 927) through improved planning and measuring of consumption values and demand to determine the correct lot sizes to order.  The on-time supply of materials and spares when required improved by 17%.   Through improved inventory management and procurement processes, the value of stock levels decreased by 14% (from US$ 459 million to US$ 404 million).

VALUE USD

$  55 292 553.19

Category
GapsResolved