Business Improvement Competitive Edge

Business improvement optimising cross country freight to gain a competitive edge over direct import into Western Australia for a manufacturer of liquid products.

The Background

Customer experienced erosion in product margins and customer retention due to increasing business costs mainly due to the rising costs of direct imports within a more volatile market.

There was recognition that the existing west coast inbound freight model needed a complete review, with the goal to optimise both ends of the supply chain to provide customers with a competitive priced product locally manufactured.

How the Siecap team helped

Review of the import supply chain model and the alternative modes of freight from East coast to West coast. Benchmarking of the operations and supply chain against direct import to identify the value.

Detailed change management plan covering impacts of the increase in volume at the Australian manufacturing plant, specific work instructions on changes to demand forecasting and DRP processes to cover product SLA’s. Implementation of detailed process mapping, and operational implementation to cover new loading processes and coordination of inbound / outbound freight.

The Results

Set up robust DRP processes from East Coast to West Coast covering bulk and pack product SLA’s with no impact to customer orders

Reduction in freight costs of ~40% in comparison to direct import comprising of lower cost of transport medium (ISO to Bulk Flexi)

Flow on benefits within the manufacturing plant due to increased volume lowering cost of goods and adding an additional layer within the business continuity plan.

Our Clients

We have delivered results for distinguished businesses and projects in Australia and abroad.