Gross margin improvement, heightened employee engagement & the breaking down of silos, are the vital outcomes.
Value Leakage Workshop
The Value Leakage Workshop brings cross-functional teams together to transparently dissect a designated supplier or customer relationship.
Relevant contract or service level agreements (SLA’s) are reviewed by clause and function to determine where and why deviations are occurring. Positive and negative cost impacts will be discovered and an annualised value calculated for each. A considered and sensitive plan is built to reclaim each value leakage item.
Typically, some 5-15% of margin improvement will be identified, whilst a powerful by-product of the workshop is the resulting improvements in employee engagement.
Staff reduction at Customer’s receiving sites (2) has led to 50 hours of weekly demurrage charges for a Supplier. At $100 per hour, the Supplier incurs $260k of annualthird party logistics expense…
A Technical Support employee travels 250 km’s one day per week for 4 years to “service” a regionalCustomer. Commercial Leads (Supplier & Customer) were completely unaware…
The Logistics function of a Packaging Supplier finds itself pressured to meet changes to a Customer Finite Schedule, with less than 3 hours notice, at least 12 times per week. Each change causes $1k of disruption cost, worth $624k per annum…