SCM Consulting Construction materials

Characteristics and particularities
Industry insight

On the one hand a growth market, but gripped by a scarcity of capacities and rising commodity costs on the other – the construction industry moves between these dichotomous poles. Moreover, there is demand for green, inexpensive and innovative solutions – in other words for smart products and competitive processes. The typical consumer structure is shifting from trades firms to DIY homeowners due to the persistent trend toward do-it-yourself. Companies that supply the construction industry must face up to these challenges. This applies all the more to high-value parts and the significant supply chain costs.

A partner to many sectors that operates principally on growth markets, the packaging industry is also affected by the demand for green, sustainable and technically sophisticated solutions. The broad product ranges need to catch the eye consistently by providing more cost efficient, visually attractive and even suitably marketable solutions. Customers operating around the world need global suppliers. Hence, many small to medium-sized packaging companies are required to internationalise their own production and to follow their customers into new markets.

Challenges to
ensure competitiveness

Specific framework conditions and special challenges that are characteristic of the construction materials and packaging industries:

Globalisation of production and value chains
Integration of distribution, production, logistics and procurement through modified supply chain management strategies and processes (SCM)
Bundling of production and logistics processes to suit individual commodities with a consumer goods-oriented end market, e.g. in the form of DIY stores
Significant supply flexibility with short response times
Permanent cost savings through SCM and lean methods
Supply processes (for retail and distribution companies) to accommodate customer requirements, e.g. vendor managed inventory (VMI)
Implementation of cost-efficient and environmental (green logistics) transport and logistics processes
Punctual delivery of building sites with systems for optimised handling
Reduction in finished product inventories in the distribution structures while maintaining high level of delivery service

ebp-consulting
Selected consulting focuses

Forecasting and demand planning
Sales & operations planning (S&OP), integrated planning and control
Intelligent scheduling procedures
Production and distribution networks
Procurement and logistics strategies
Purchasing strategies and purchasing process optimisation
Inventory optimisation along the value chain
Line-side presentation, replenishment and range strategies in distribution
Order fulfilment processes
Transport and freight cost optimisation using big data analytics tools
Lean SCM methods, lean production
Warehouse and logistics optimisation, especially for distribution warehouses
Outsourcing of logistics, service provider concepts
SCM IT applications for planning and control

Project examples
Customer benefits through industry expertise

A selection from our extensive range of products.

Development of a sales & operations planning concept for an international glass manufacturer:

Design of an S&OP concept for an entire business unit with several production locations. Establishment of an SCM strategy and attendant organisation.

Optimisation and standardisation of forecasts, order management and production planning processes in selected plants.

Definition of calls for action in order to implement the new processes, and deduction of requirements for the ERP and SCM software Systems.
Support in the design of various SCM approaches for an international paper and packaging manufacturer:

Design of a sales platform to reflect customer requirements. Preparation of specifications and requirements catalogues for IT implementation, benchmarking and auditing of potential IT systems.

Definition of standard processes for order management and replenishment of the various distribution warehouses and customer consignment warehouses. Design of approaches for inventory optimisation.

Optimisation of processes between distribution and supply chain Management.
Optimisation of Europe-wide distribution for a manufacturer of sanitary items and air conditioning technology:

Development of the SCM strategy and concepts for the future European distribution structure, including transport.

Design and assessment of scenarios for optimised warehouse locations and logistics functions (central warehouse/replenishment, regional warehouse, turnover), including the interface with transport concepts. Modification of processes in the relevant warehouse locations.

Reorganisation and optimisation of the transport concepts using a detailed simulation model.