CASE STUDY

Building the case for optimised logistics management at ConstructionMaterialsCo

One of Malaysia’s leading conglomerates faced challenges in logistics management within its construction materials division. Seeking to optimise their processes, they turned to ArcBlue for guidance.

ArcBlue Engagement

ArcBlue identified a pathway to a centralised logistics operating model, projected to deliver 49% in cost savings.

Key Challenges

Addressing fragmented logistics management caused by decentralisation

ConstructionMaterialsCo struggled with significant commercial and operational issues due to a decentralised logistics approach. Each business unit operated independently, resulting in fragmented operations and a lack of cohesive strategy.

This lack of central oversight led to visibility challenges, complicating the management and optimisation of logistics processes across the organisation. As a result, ConstructionMaterialsCo experienced rising costs, inconsistent service levels, and missed opportunities for synergies, ultimately affecting its bottom line and competitive edge.

The company engaged ArcBlue to conduct a comprehensive logistics maturity assessment focused on its four largest business units. The aim was to identify gaps in current logistics practices and guide the company towards a more efficient strategy.

Comprehensive Logistics Maturity Assessment driving operational efficiency and cost savings

On-site visits

ArcBlue employed a thorough and systematic approach, starting with on-site visits to 14 key facilities, including cement plants, quarries, ports, and road maintenance hubs. These visits provided crucial insights into operational efficiency and highlighted specific areas for improvement.

Leadership self-assessment

To gain a deeper understanding of the existing logistics framework, we conducted leadership self-assessment surveys and interviews with key stakeholders. This allowed for a comprehensive evaluation of current logistics processes, revealing opportunities for enhancement.

Advanced network modelling

ArcBlue utilised advanced logistics network modelling to analyse fleet requirements and develop scenarios for optimising logistics management. This holistic approach ensured all aspects of logistics operations were scrutinised, laying the groundwork for a more streamlined and cost-effective strategy.

Outcomes

Identifying actions for transforming logistics

The assessment uncovered several critical issues in ConstructionMaterialsCo’s logistics operations. To address these, we provided strategic recommendations aimed at transforming the logistics framework.

A primary recommendation was to establish a comprehensive in-house central logistics function. This centralised approach would streamline operations, maximise synergies across business units, enhance visibility, and significantly reduce costs.

We also identified the total logistics fleet necessary to meet the needs of the in-scope businesses, categorising it by transportation mode to ensure optimal efficiency. Additionally, we developed a detailed business case for change and outlined a roadmap detailing the key enablers required for effective implementation of the new logistics strategy.

The pathway to sustainable growth and significant cost savings through logistics

Through this collaborative effort, ConstructionMaterialsCo is now poised to transform its logistics operations, unlocking significant value and driving future growth.

With a detailed roadmap in place, the company is well-equipped to execute the new logistics strategy, ensuring long-term efficiency and sustained growth as it embarks on its journey towards operational excellence and cost optimisation, with a projected 49% cost savings as a result.

*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.

Need to build your roadmap for procurement change?

ArcBlue’s Procurement Diagnostic uses a structured process to assess current procurement activity and develop a roadmap which reveals opportunities to reduce cost, improve supplier performance and enhance influence in your organisation.

Find out how ArcBlue can help you

MORE CASE STUDIES

Workforce & Skills Development Review

We were engaged to undertake a Workforce & Skills Development Review for a government organisation in New Zealand.

ArcBlue Voice of the Supplier Case Study

Voice of the Supplier Programme

ArcBlue conducted a comprehensive Voice of the Supplier (VoS) programme to assess supplier perceptions and responses to a major procurement transformation.

Supplier Portal Hub Design & Implementation

Wanting to increase engagement with local suppliers, this council partnered with ArcBlue to co-design and implement a Supplier Portal, utilising ArcBlue’s myBuy hub solution.

Strategic Category Management

We were sought to support the university's move from a reactionary administrative function to a strategic category management model and help unlock value from its suppliers.

Sourcing an eProcurement Platform for Government

We worked with a state government department to identify an optimal value-for-money eProcurement solution.

Social Procurement and Workforce Development

We developed a Social Procurement and Workforce Development Strategy on behalf of a state government project in NSW.

Social Impact Measurement & Analytics

We worked with a state government department to enhance their reporting capabilities through our procurement Dashboards.

Savings Identification

We performed a spend and opportunity analysis for a large logistics company who were undertaking a strategic review to transform the company through a number of initiatives.

Savings & Opportunities

We were engaged to execute our Savings Accelerator methodology for a large retail wealth manager who was in the process of an org-wide transformation programme.

Risk Governance Management

We were engaged in order to understand what due diligence was in place for the client's supply chain and how it was being applied.

Procurement, Supply Chain and Infrastructure Delivery Operating Model Review and Transformation

We conducted a Procurement, Supply Chain and Infrastructure Delivery operating model review and transformation program for an energy utility in Australia.

Procurement Transformation and Savings

We were engaged to assist a rapidly growing FMCG brand to understand the supplier market, define their needs and establish a supplier base that could meet the future needs of the business.

Procurement Strategy for a building construction project

We developed and delivered a Construction Project Procurement Strategy for a University campus in Australia.

Procurement Strategy & delivery for a waste infrastructure project

We worked with an Australian water utility organisation to lead the development of their procurement strategy and delivery of their procurement approach.

Procurement Strategy & Delivery for a Design & Construct Contract

We undertook an Infrastructure project procurement strategy for a Design and Construct contract for an Australian Council.

Procurement Review & Capability Assessment

This Australian University went through a university-wide review including financial performance, efficiency, resourcing, and categories of spend range to ensure they were ‘future ready’.

Procurement of Electrical & Mechanical requirements for an electricity organisation

ArcBlue assisted the Owner's Engineers team to lead the Procurement of the Electrical and Mechanical (E&M) requirements for the project through agility, innovation, commercial acumen, stakeholder management and technical proficiency.

Procurement Framework Simplification & Weaving of Commissioning

We worked with this client to co-design and develop a new digital procurement framework, infographic and resources

Procurement Framework Review & Documentation Development

We worked with an Australian water utility organisation to review their existing procurement procedures and policies.

Procurement Framework Review & Development

This Federal Financial services organisation operated in a decentralised procurement model. The Technology Procurement team provided a procurement service to the Technology Business Unit.

Procurement Framework Review & Capability Development

We supported the implementation and review of a Procurement Framework for a financial services institution which included a Capability Development assessment.

Procurement Framework Review

We were engaged to review the procurement process and function as part of a University Strategy 2030. The university necessitated a review of their purchasing practises and the creation of a roadmap to help them achieve their long-term goals.

Procurement Diagnostics & Process Review

We were engaged to conduct an end-to-end procurement process review for a financial institution.

Procurement Diagnostic, Category Review

ArcBlue provided in-house Category Management training to this client's sourcing professionals. We were also engaged to provide ongoing direct support to the category managers by coaching them through the category strategy development process.

Procurement capability assessment & transformation for a Healthcare organisation

This Australian Healthcare facility embarked on a transformation of the Procurement function to enable the strategy, create efficiencies and to achieve increased value for money.

Procurement & SRM Capability Development

We were engaged to deploy a pQ and smQ online assessment to support the capability gap across procurement and supplier relationship management for a financial institution.

Procurement & probity advice for an Infrastructure procurement project

We undertook a Construction project Procurement Strategy & Probity review at the conclusion of an RFP evaluation process for a State Government agency.

Place-based Social Procurement Progam

We led the social procurement aspect of this social regional initiative to help businesses achieve social and local outcomes.

P2P System Selection Project

We reviewed and helped to improve this logistics company's financial accounting practices.

Outsourced Managed Service Procurement Provider

We worked with an Australian Council to plan and deliver their annual procurement program.

Modern Slavery Risk Assessment Methodology

We helped the client develop an overall methodology for assessing supply chain modern slavery risks and actioning risk assessment outcomes.

Logistics Management Optimisation

ArcBlue facilitated an in-depth logistics maturity assessment focused on the client's four largest business units. The aim was to identify gaps in current logistics practices and guide the company towards a more efficient strategy.

Leading a Joint Tender process to achieve value for money outcomes

We undertook an Infrastructure project to deliver a joint procurement tender that achieved value for money outcomes for a State Government agency.

Identification of procurement improvements

We implemented our Procurement Diagnostic methodology to design a new procurement organisational structure for a superannuation organisation.

Identification & delivery of cost savings

We worked with a financial institution analyse the current spend and identify savings opportunities to support the acquisition synergy target.

Government Procurement Transformation Program

We supported a state government department to achieve better outcomes through their procurement.

GNFR Categories Savings Programme

We performed a savings diagnostic for a large Australian retail chain and completed an organisation wide assessment of procurement capability.

Gap Analysis Study against ISO 20400 Sustainable Procurement Standard

We were tasked to perform a gap analysis for the client to carry out its sustainable procurement practices.

Fulfilment, Logistics and Supply Chain

We were enrolled by Bain & Company to drive an end-to-end strategic sourcing process and to lock-in savings for a global FMCG distributor.

Event Procurement for VAILO Adelaide 500

ArcBlue was engaged to undertake VAILO 500 event procurement by the South Australian Government. Read how we led and provided key support for the sourcing of all infrastructure and associated goods & services for the 2022 VAILO Adelaide 500 event.

eProcurement System Sourcing & Training

We supported an Australian water utility to select a new technology system and helped to build the skills base of their team.

End-to-end Procurement Program

We were engaged to undertake an end-to-end Hot Fire Training Structure procurement process for an organisation who is responsible for the provision of air traffic management, air navigation support and Aviation Rescue and Fire Fighting Services to the aviation industry.