How can the entire ECT service supply chain be improved?
“The most valuable outcome of this project has been the removal of the (figurative) walls between the maintenance, logistics and procurement departments. At the start of the project, these three departments made accusations about each other and did not communicate well at all. By breaking down the walls, understanding was achieved and requirements and ideas for improvement could be easily discussed together.”
Partnership, forecasting & performance
ECT professionalised the entire ECT service supply chain in partnership with Gordian; all of this just in 9 months’ time. One valuable intervention was the involvement of representatives from the procurement and logistics departments in the maintenance department meetings directly from the start of the project. This immediately broke down the figurative walls and brought a lot of mutual understanding. We focused our further attention on three pillars:
- collaboration between the procurement, logistics and maintenance departments
- delivery reliability
and to reduce the number of suppliers, Gordian introduced Category Management at ECT. A procurement concept in which the entire product range of parts is divided into separate groups of similar or related products; these groups are known as product categories. This is a systematic, disciplined approach to managing a product category as a strategic business.
We optimised the material planning which led to quite a better collaboration. Material availability at ECT proved to be low while the costs were high. One of the most important reasons for this was that order levels were mainly determined based on human experience. In addition, the ERP system was not utilised to its full potential. Gordian completely optimised the ERP system. The system now makes forecasts based on historical data. In addition, based on required service levels, safety stocks are calculated for all the parts.
To monitor and safeguard the improved performance, Gordian implemented a ‘plan-do-check-act cycle’ for the entire service supply chain. This enabled ECT to quickly respond to “misperformance”.
An optimised service supply chain based on mutual trust between the procurement, logistics and maintenance departments.
The new situation requires mutual trust and good collaboration between the various departments in the ECT organisation. Roel Okhuijsen, Maintenance & Repair Manager has every confidence that ECT will succeed. The first results have showed that this has become true already.