CASE HISTORY
Servispart strengthens major defence manufacturer with logistics support and supply chain improvements
Manufacturer wins lucrative contract extension as supply chain arrears are reduced by 44%
Background
In 2006 the UK Ministry of Defence’ (MOD) had an Urgent Operational Requirement (UOR) for more Armour Protected Patrol Vehicles (APPV). A provider of advanced armour systems decided it would quickly diversify its business in response to this opportunity.
Working with traditional Defence vehicle manufacturers , it used its design, engineering and programme management skills to develop an agile vehicle integration business and delivered several hundred vehicles in a short space of time. The project was a resounding success and saved many lives during overseas operations.
Aftermarket opportunity arises
As vehicle use increased, so did the need for vehicle spares, repairs and maintenance. However, without a strategic aftermarket plan in place, the company soon realised they were not prepared for the demand or complexity of delivery.
Servispart defence experience builds strong base
Servispart Consulting was initially engaged to help improve the spares, planning and logistics to help reduce the Dues Out Backlog (DOBL); improve parts availability and ultimately help the company to win an extension on its Contractor Logistics Support (CLS) contract.
With enormous experience in MOD contracts and systems, Servispart introduced their own proprietary Contractor Logistics Support model, an advanced and improved version of the model designed designed and pioneered on the very first parts availability contract for the UK MOD back in 1997.
The Contractor Logistics Support model was introduced to capture and analyse key capability gaps in the client’s 4 P’s (process, platforms, people and partners).
Servispart recommendations deliver impact
After the root causes of the supply chain bottlenecks were identified, a number of improvement opportunities were discussed with our client. Improvements were made to several supply chain activities including purchasing, supplier improvement, receiving, internal logistics, warehousing, material management, engineering liaison, quality assurance and commercial.
Lean management techniques are not just for manufacturing
In particular, lean management techniques were utilised to improve the inbound parts supply chain and reduce the spares backlog. Lean management techniques were also used and visual management boards deployed for the internal assembly operations to improve the turnaround time for parts assemblies made in-house.
Contractor Logistics Support contract win
We also made good use of our bid support capabilities, knowledge of JSP 886 and used our proprietary Contractor Logistics Support model again to assist our client in preparing a comprehensive Statement Of Work (SOW) for their Contractor Logistics Support (CLS) contract extension, which was subsequently won.
Client benefits delivered earlier than planned
To the delight of our client, we achieved our engagement goals two weeks earlier than planned, delivering the following business benefits:
Dues-out Backlog Reduced
Assembly Arrears Reduced
Intangible business benefits for the OEM
The real business benefits of all these operational improvements included:
