Improving customer experience with on-time delivery accuracy and purchase order automation
%
Improved on-time delivery accuracy
%
Purchase order automation level reached
Valmet's logistics center in Hyvinkää had a low on-time delivery accuracy and the situation was impacting negatively on customer satisfaction. Corrective actions were needed to improve the situation.
Midagon's consultant established a task force with relevant parties, including ERP system development, procurement as well as Hyvinkää logistics and business line management. A root cause analysis was made to identify the main areas that needed to be improved. After this, corrective actions were initiated.
No single “silver bullet” was found but various corrective actions were chosen. These were related to the ERP system and master data, additional resourcing in key improvement areas, and finally, a quality audit execution in the logistics center to identify the main bottlenecks in the logistics center itself.
The areas that needed improvement were identified and corrective actions were started. Some of these were still ongoing at the end of the assignment. ERP development needs were documented and included into the normal ERP development process. A volume forecasting process was established to provide visibility to the required warehousing capacity at the logistics center. Within 6 months time, on-time delivery improved by 25% and purchase order automation level by 214%.
