Industry

Sonae Indústria improved supply chain operations and saved over 3.5M Euro

Sonae Indústria improved supply chain operations and saved over 3.5M Euro

Germany

Project facts

Client: Sonae Indústria

Services: Operational Excellence

Sonae Indústria wanted to assess the efficiency of the current logistics operations and bring visibility to the company's supply chain across their network of production facilities in Germany. They asked Pöyry Management Consulting to carry out a diagnostic of their supply chain and logistics operations because of our long standing relationship our expertise and experience in the wood panels sector. Project OSCAR (Optimize Supply Chain And Resources) focused on quantifying cost accumulation and the identification of cost savings opportunities while simultaneously optimizing inventory and customer service levels.

The major challenge was to integrate local optimization plans across all plants and processes to build a more efficient and integrated supply chain. An integral part of the work was to evaluate alternative business models for logistics and transport. Pöyry identified cost savings of 3.5 million EUR in process efficiency improvements and organizational streamlining as well as 8.4 million EUR in working capital reduction. In addition, Sonae got improved visibility in to operations and cost structures. The project was short listed for the finals of the Best Process Improvement Project in the manufacturing category at the 11th Annual Process Excellence Summit in 2010.