01926 633333Improving customer service through reorganising the supply chain
The Problem
Our client, a housing, health, and care providers partner, was formed from a union of three other health and care partners. Their purpose, is to provide emergency monitoring to patients and residents within the housing sector.
Investors were looking to grow the business from circa £20m to £40m over a three year period. £10m of this was planned to come through acquisition (including a telecare business) and £10m through organic growth.
This effectively meant the installation and maintenance part of the business also needed to grow from £12m to £17m during the same period.
The client asked Bourton Group to assist them in their journey particularly focussing on process and supply chain improvement for the maintenance business.
We worked with the management team to undertake a comprehensive review of the business supply chain at three levels shown below:
Level 1 – Strategic Issues
- Strategic plan to double turnover in three years
- Current Supply Chain Organisation Structure
- Do v Buy – Stores
- Do v Buy – Subcontracting
Level 2 – Management & Support Functions
- Procure, Supply, Install process
- Subcontract Management
Level 3 – Operational Delivery
- Warehouse- requirements
- Asset Management / Tracking
At the end of our initial phase of the assignment, we had developed eight work streams presenting several options and recommendations to the directors that could overhaul the business and deliver significant, measurable improvements.
Our proposals was accepted and we were asked to work alongside the management team to implement the recommendations over a nine month period.
The Solution
We worked with the local management team to deliver several process and organisational improvements, such as:
- Product Development process – the methods of developing new products within the business were reviewed and a structured approach with clear communications and rigorous action planning was implemented to de-risk project milestone delivery.
- Stores processes and stock control – examining current state and making improvements to stock take procedures and parts availability.
- Planned maintenance operational performance – the key priority for the business was the planned maintenance team and their ability to deliver compliance levels required for statutory checks each month.
An increase in orders required a new approach to managing the monthly volumes and increasing the number of checks completed.
An internal steering group was created made up of heads of department and senior managers but led by Bourton Group this enabled us to drive the required changes.
A significant increase in output was achieved over the four months that followed.
Knowledge Transfer
We worked closely with the supply chain manager and the regional service delivery managers – coaching them in the new ways of working to improve operational effectiveness.
Organisation & Leadership
The leadership team needed a more radical overhaul, and based on our assessment several key players were replaced during the life of the project as it was recognised they were not likely to be able to perform in a larger, more process-oriented business.
Coaching and ‘at elbow’ support was given to those who were willing and able to grow with the business.
The Benefits
- Soft benefits included coaching the good staff and removing some of the blockers to progress.
- Hard benefits were seen in the improvement of service levels to clients and reductions in customer complaints.
- We also helped the business come to the strategic conclusion that the maintenance operation was probably better outsourced and focus directed towards the digital offerings the company had.
What Housing, Health, and Care Providers Partner said about us
Thanks for being so flexible and for all your help this year. It’s been great working with you.
Chief Operating Officer