Multinational snack food producer calls for assistance in restructuring logistics processes

A fast-growing Belgian producer of bakery products was faced with the temporary absence of an important employee. The timing was exciting, because the company was facing a change process at that time, including several newly formed teams. 4Supplychain Consulting was asked to fill the interim position. Jens Michaelis got to work on the challenges in the field of supply chain planning and services.

Where did the interim assignment take place?

The company where Jens started his interim assignment is successful and has a clear growth plan. There is a lot of demand for bakery products. The company has several factories and a central distribution center in Belgium, supplemented with additional factories in France. Jens: “The company invests a lot in its IT landscape and has a very motivated workforce. That felt like a pleasant work environment. Despite, or perhaps because of, the company’s growth, there were a few challenges. The most important of these is probably that it is not always possible to meet the demand.”

What was the focus of this supply chain assignment?

The emphasis of the interim assignment was on taking over the tasks of the temporarily absent manager. “And because two new teams were set up shortly before my arrival, it was important to have these teams work well together. This involves setting up new processes and making clear agreements. The same was applicable to other departments within the company, such as marketing and sales. There were a lot of changes in a short period of time. My primary job to manage the two teams, guide and support team members and escalate if something did not run smoothly.”

How did it go in the beginning?

Upon starting, Jens encountered a well-running machine that could use a bit of oil. Jens: “The idea was that I would have an induction period and transfer of two weeks, but this unexpectedly became only a few days. By reading a lot and asking questions, everything turned out fine.”

What logistical adjustments did you make?

There was a plan ready with projects and investments before Jens arrived. “I added a few ideas to that. Such as how we could respond to the high permanent occupancy of the warehouse. Due to the standard need for external warehouse space and enormous peaks in demand, it is difficult to maintain the perfect 85 percent in-house. Previous attempts to manage this led to frustration, stress and additional costs.” With Jens’ knowledge, a model was set up containing the forecasted sales and production at weekly level. “We converted and monitored it at daily level. This made it easier to predict where we would stand in a week or two. The result is that we now consistently have a warehouse occupancy of 80-85 percent based on a correct predictive model.”

Could any logistic savings be realized to improve their overall supply chain costs?

Nevertheless, the producer’s supply chain required more structure. That is why a number of drop size analyses were carried out. “In doing so, we calculated the possibilities and advantages of, for example, fixed delivery days and combining trips between locations. The potential savings are significant.” Another improvement with a great effect on the logistics chain are clear agreements between sales, marketing and the supply chain. “Promotions now have better logistical preparation, where we start well in advance instead of sometimes only a few weeks before. In the past, this led to a lot of stress for the organization and potential delivery problems as a result.”

What was the key to success in implementing the changes?

Although the interim job was intended to streamline logistics processes, including planning and pressure in the warehouse, the project mainly had a human aspect. “If you have to change something while there is an extremely high work pressure during peak moments, that requires that little bit extra. It is really essential that people continue to work well together and that the atmosphere remains good. That was probably the biggest challenge, but it was definitely successful.”

Did you like it across the border?

The human aspect was also reflected in Jens’ own situation. “The division of roles is a bit more hierarchical in Belgium than in the Netherlands. I enjoyed working there and experienced few negative things. Ghent is also a beautiful city, where one can easily spend a longer period of time.”

Please see our interim page where we can help with regards to interim managament.