Sandhill Consulting Group is deeply experienced managing the operations of our client business types.
Whether the assignment is taking the lead in running a client’s plant, re-organizing the distribution center to accommodate new customers or markets, sourcing new products, developing new packaging or assisting with the installation of a new Enterprise Resource Planning system, Sandhill Consulting Group has the skill and experience needed to complement our client’s internal team and to complete the project on time and on budget.
- Strategic Sourcing and Procurement including Asian Procurement
- Supply Chain Strategy
- Supplier Contract Development
- Performance Measurement
- Capital Project Justification and Management
- ERP and WMS Implementations
- Warehouse Optimization
- Inventory Management
Candle manufacturer was outgrowing its ability to service its customers. Sandhill partner worked alongside ownership to implement more efficient manufacturing systems and capabilities; improved material and production resource planning; and renegotiated terms with existing vendors, including speed of raw material deliveries. Client was able to successfully fulfill orders.
The Challenge: A large customer demanded that the Company have a formal disaster recovery plan as a condition of continuing to do business. The Company was given 90 days to comply.
Our Approach: Sandhill executives convened a task force of internal staff, divided the work into do-able tasks and established a Gantt chart project plan. Project progress was tracked as part of the project plan and weekly formal updates were held as the plan was developed. As a final step in plan preparation, senior management reviewed and signed the document. The approved plan was then shared internally with key individuals and externally with the customer. The time schedule for regularly updating the plan was included as part of the formal document.
Results Achieved: The customer was impressed with the thoroughness of disaster scenarios provided for in the plan. They approved the plan and continued doing business with the Company.
The Challenge: The Company did not have written supply agreements with all key vendors. Not understanding when materials prices were increasing (or decreasing) resulted in a product pricing strategy that lagged the market and, in periods of cost increases, reduced margin. Sandhill was engaged to formalize the Company’s agreements with key vendors.
Our Approach: A priority list of targeted vendors was established, based upon their materiality. Meetings were held with senior executives of each high priority vendor to discuss formalizing supply arrangements. Emphasis was given to the price adjustment feature of agreements and, in several key commodities, indices that would govern price advances were agreed to, and the number of price changes per year was limited. Payment terms were reviewed and, in one case, a warehousing program was established with a major vendor.
In cases where multiple resources were providing the same item, the majority of volume was consolidated under the vendor who could provide the most favorable terms of sale. Usage forecasts were routinely shared with priority vendors for capacity planning purposes.
Formal quarterly reviews were held with the lead vendors and these vendors were requested to provide special pricing for new product initiatives.
Results Achieved: This project was completed in six months and was immediately successful. Index driven pricing delayed and mitigated vendor pricing action the Company previously absorbed and the sharing of forecasted volume with vendors resulted in more vendors being willing to keep Company required items on their floors in advance of purchase orders being placed.
The Challenge: Company desired to save $2 million per year by moving its Distribution Center functions internally from a Third-Party Logistics Provider (3PL).
Our Approach: Sandhill executives helped put together an internal distribution plan with proper systems, warehouse layout, material handling equipment and distribution leadership. Sandhill ewxecutives assisted the Company in identifying and hiring a distribution leader (and staff) well in advance of the planned transition. Also, Sandhill led a task force comprised of the warehouse management system vendor, the manifesting vendor, the freight planning system vendor and internal company management. This team delivered a single system that supported all internal distribution requirements. A detailed training plan was established and implemented and daily cycle counting was established. Sandhill assisted management in laying out the warehouse and selecting equipment, and a phased approach to the transition was implemented which allowed both system changes and procedural changes to the made without jeopardizing excellent customer service.
Results Achieved: The transition occurred seamlessly both on time and on budget, with no disruption to customer service and with high levels of inventory accuracy. An added plus was the savings achieved by internal transportation planners versus the 3PL planners.
Plastics thermo-former faced governmental and customer pressure as styrene was being banned for environmental reasons and key resin was increasing in cost faster than competitive resins. Sandhill partner converted selected extruding and thermo-forming equipment to enable use of alternative resins and utilized co-production partnerships during transition time, successfully moving customers to new resins at higher margins.
A division composed of three previous acquisitions by the parent company was suffering from strategic confusion, poor order fulfillment and high overhead. Sandhill partner restructured and re-oriented the unit to focus on launch of new web-based media service for schools as alternative to monopoly supplier. Based on success of launch, parent was able to successfully sell the unit.