Private Sector Supply Chain Transformation
Akela was engaged to work closely with an internationally based, $100M market cap, global technology, and retail goods distributor company. Their business operations extend across ANZ, APAC, Gulf States, North America, and Europe.
From the preceding trade war of 2019 to the global pandemic supply chain disruptions over the past several months, the client through its network of own distribution centres, 3PL providers, freight forwarders and carriers, faced significant supply chain performance and cost pressures throughout its business.
Akela was engaged by the CEO and company owners to conduct an enterprise-wide supply chain maturity assessment to identify critical causal factors/capability gaps and appropriate remediation actions to reduce supply chain costs, improve gross margins performance, improve operational and order fulfilment performance, increase order volume capacities, and improve customer satisfaction outcomes across all international markets that the company operates in.
Additionally, Akela was requested to review and provide input into the company’s strategic plans and long-term growth plans to reach a $500M market cap.
In 2023 Akela achieved the following:
Designed and implemented an enterprise-wide Supply Chain Transformation Program targeted at remediating the identified pain points:
- Redesigned and optimised their end-to-end order management and fulfilment workflow, functional set-up, and team structure (including staff knowledge and skills training uplift), as well as drafted new SOPs.
- Introduced supply chain systems integration, data analytics and business process automation capabilities.
- Consolidated and optimised existing DCs and carrier networks for each region and structured the operations to support the different sales channels within the business – Distribution, Trade, Retail/e-commerce. This included transitioning out and terminating non-viable or non-performing LSP contracts globally.
- Tackled the challenges of a volatile international container and shipping spot rate market by redesigning and optimising the client’s international freight forwarding networks across all trade lanes through the adoption of a multi-shipper strategy and benchmark pricing approach to landed cost savings.
- Negotiated contract renewals with all 3PLs and LSPs that were performing to expectations and intended to be maintained in the global supply chain network, including new measurable performance-based SLAs and rate card reductions, and setting up a contract and performance management framework for each service provider.
- Led and launched a brand-new multi-site national 3PL contract from Approach to Market to contract negotiations, introduction into service and transition to BAU operations.
- Achieve 95%+ OTP (from sub-80%) and a 15% outbounds freight cost