Supply Chain Project

The Client

A well renowned brand providing smart meters to the gas and electric market in UK and Europe.

“Hilary has played a massive part in the success of this project. What she brought to the role was more than just an interim manager, she contributed everything to the role. There are not many more compliments I could give her, I would have loved to have her with us permanently.”

The Challenge

The objective was to move the business from direct to outsourced manufacturing without impacting customer service levels and providing uninterrupted support for the remaining UK sites. Senior management of gas and electric meters were under intense pressure as they were going through substantial change and there were significant supply issues for raw materials.

The skillset in the UK sites was not suited to the management of outsourced manufacturing with headcount split across 2 main UK sites, working with immature existing processes. In addition, the capability and processes to manage the contract manufacturers were at a minimum needing establishing and driving to acquire the correct level of control.

The Solution

Transform the structure and processes of the UK supply chain department, focusing on
standardization across Gas and Electric metering along with developing control mechanisms
at the outsourced manufacturers through:

Introducing a sense of urgency in daily operations and active participation in all internal and external manufacturing sites ensuring seamless sharing of information.
Implementation of combined finance and supply chain reviews to ensure tight control of extra costs generated from outsourced manufacturers.
Running bi-weekly supply chain meetings to align orders and build plans across all metering.
Formalising reporting from internal departments and external sub-contractors on all issues impacting delivery and cost in both Europe and Asia.
Leading coordinated response with all departments and outsourced manufacturers to resolve raw material issues.

The Results

Volumes transferred to outsourced manufacturers running at ~70%
Instrumental in delivering one of the highest quarters for sales and volumes of >500k units (Q1, 2019)
Reduction in claims from sub-contractor by 40%
Open culture operating successfully which has removed barriers between internal departments and outsourced manufacturers
Significant improvement in team knowledge transfer driven by clear roles, responsibilities and communications
Focus of indirect procurement changed to focus on performance metrics and process optimisation
Increase in quality and timeliness of information being delivered to management and outsourced manufacturers

About the Author

Claire Lauder

Managing Partner, Interim Management, United Kingdom

Managing Partner Claire Lauder leads the Industrial Practice of U.K. Interim Management, focusing on industrial manufacturing, advanced engineering and technology. She works with FTSE and AIM-listed firms, PE-backed and owner-managed small and mid-size enterprises, partnering with investors and leadership teams to understand their strategic goals and identify leaders who help reach them quickly.