Industrial team ERIKS centralizes its European supply chain

As part of its renewed offer chain technique, ERIKS requested Groenewout to assess the choices for a one, central European offer chain, including investment decision proposals. A advanced project that absolutely wasn’t without its troubles. “But the benefits unquestionably make it all worthwhile,” states Remco van Haastrecht, European Source Chain Director at ERIKS.

One of the world’s largest industrial services providers, ERIKS features a large variety of complex items, co-engineering, customization alternatives and connected industrial solutions. While ERIKS is energetic in 18 international locations, the bulk of its organization arrives from Europe, which roughly accounts for three quarters of the company’s revenues.

Throughout Europe, ERIKS has 20 logistics and generation services, which mixed provide 90,000 consumers in a huge wide range of industrial segments: from foodstuff processing and transportation to vitality and chemical substances.

“Every state has autonomy that’s a single of the keys to our results,” states Van Haastrecht. “However, the flipside is that regional autonomy could at moments consequence in a degree of sub-optimization in the group, and that can be complicated as you continue to improve.”

To this end, ERIKS questioned Groenewout to revisit a review that the consulting business experienced originally executed again in 2016. Van Haastrecht: “We asked Groenewout to look into the likely for a solitary European source chain, primarily based on consolidated shares and less destinations – which would of training course then be optimized for their new features.”

“Our intestine instinct told us that the potential was there, but unnecessary to say we needed to know for positive prior to producing any decisions.”

Retrofit scientific tests

Groenewout analyzed all the applicable creation and logistics knowledge – from the selection of SKUs and the inventory levels to the full amount of storage space, the merchandise flows and the inventory turnover ratios. The summary was very clear: it would surely make sense to consolidate the European stocks into a single source chain.

“So our gut experience was right – just as it had been in 2016, but the group wasn’t mature sufficient for it again then. We had been now completely ready to press forward with this concept,” carries on Van Haastrecht.

From an investment standpoint, ERIKS wished to improve as minor of the existing infrastructure as achievable. The company requested Groenewout to get ready an expenditure proposal and to conduct a number of retrofit scientific tests, including for its facilities in Rijnmond, Capelle and Alkmaar.

Moreover assessing the impression of a one central European offer chain for every single place, the reports also examined the opportunities for increasing the method efficiency, the offered place, the layouts, attainable automation possibilities and the necessary degree of expenditure. “In result, for each area we looked at what precisely would be needed for an productive, potential-proof operation,” claims the offer chain director.

Regional optimization

For illustration, Groenewout carried out a feasibility research for the facility in Alkmaar using account of new operational processes, volume expansion and prospects for logistics optimization. The consultancy agency analyzed current products flows, procedures and information as the foundation for making ready new logistics principles, together with various financial eventualities and an financial commitment approach.

Van Haastrecht: “The evaluation of our current flows and figures supplied tremendous insight into the procedure. Then on best of that, overviews of a variety of situations, what-ifs and cashflow conditions gave us all the data we wanted to make the proper decisions.”

“Additionally, we now have a concrete calculation of how many sq. meters we call for primarily based on numerous products selection and buy profiles, which includes expansion scenarios, furthermore we know exactly what the construction-associated restrictions are.”

On the back again of the new logistics principle, ERIKS is prepared for the prepared SAP EWM implementation.

New European offer chain structure

The several retrofit studies shaped the basis for making ready a enterprise circumstance for each site. They have been then mixed to build a solitary learn prepare which was presented to the father or mother company, SHV, who reached the similar conclusion and gave the environmentally friendly gentle for the business enterprise transformation.

ERIKS expects to be equipped to reduce its inventory by 15-25% thanks to the new European source chain structure, when also increasing its efficiency level from 80% to 95%. “That means extra of our buyers will receive their orders on time and in comprehensive,” Van Haastrecht points out. “Moreover, the logistics costs for our provide chain functions will lower by 10-12%.”

Requested about the collaboration with Groenewout, Van Haastrecht suggests, “We would not have been in a position to do this without the need of Groenewout. They took a extremely comprehensive and substantial-top quality solution and have the suitable expertise. They additional than lived up to their solid standing.”

“It wouldn’t shock me if we solution them again for aid in the (around) upcoming. Immediately after all, this is a venture that requires a number of years, and all varieties of issues can adjust in that time. Consequently, we will preserve a close eye on the effects of our decisions and modify our options where ever required.”