Challenge

Our client was facing a myriad of disparate and unconnected tactical initiatives that were necessary to improve business and supplier performance.  The Prokür Group (TPG) was hired to facilitate the execution of these initiatives.  After conducting our assessment, TPG recommended a realignment of the initiatives into two coherent, strategic programs that would launch a new line of business and restructure the Service Center supply chain.

Complication

• 12 projects identified by the client were siloed and lacked direction and structure, putting each at risk of failure.  An end-to-end operational vision was necessary to bring the projects together under a common strategy.
• The shear number of initiatives created a complexity issue that threatened the successful realization of their expected benefits.
• The multi-year timeframe of the original charter would have had severe customer experience impacts.

Approach & Solution

• The Prokür Group conducted an assessment of the 12 projects demonstrating their linkage and alignment to two global strategies: i) a Network Optimization initiative to streamline the US-based Service Center Supply Chain, and ii) the creation of a new product line of refurbished Oxygen Concentrators.
• TPG set out to align the initiatives under one program structure and team, gaining efficiencies and streamlining project management leading to clearer and more purposeful communications and change agendas.
• A network optimization analysis applied a unique optimization model to assess multiple scenario’s for plant consolidation.
• Discovered additional benefits from consolidating spend across fewer suppliers, improved service levels due to greater compliance, and enabled the implementation of SOP changes throughout the network more efficiently.
• Used the Strategic Sourcing process to create/implement a new supply chain within 6 months, strengthening requirements and avoiding severe customer service interruptions.
• Reduced the number of vendors from 36 to 18 and the number of service center locations by 20% while still maintaining a 98% service level.
• Saved the company over $1.4MM (42%) from price reductions.  Additional benefits from standardized operations improved SLA’s with liquidated damages.

In parallel to the Network Optimization initiative, TPG advanced the creation of a new product line for refurbished oxygen concentrators – identifying the market potential and developing the Business Case for the new product line.  Designed and created the operational Supply Chain, including recommendations on how to leverage the existing network to conduct operations.

• Benefits from the new product line would nearly double the year’s revenue growth (188%).