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17-3

CLIENT

  • Dorel Juvenile, a US$1.2B revenue division of Canada-based Dorel Industries with 20+ Juvenile brands sold globally to over 100 countries (on 6 continents) and 3000+ SKU’s across 17,000 PO line items managed annually.

PROJECT

  • Contracted to consolidate multiple global brands acquired in a short period of time on different continents requiring supplier and procurement process consolidation to leverage global procurement in Asia.

ACTIONS

  • Drove strategy to combine 5 global entities Asian based sourcing and procurement in China, with US$230M/FOB annual spend, into one entity supporting a global procurement & supply chain matrix.
  • Reviewed and mapped each market’s purchase to pay and go to market process, analysed gaps, realigned sourcing and purchasing process globally allowing for market localisation.
  • Established technology hub that consolidated P2P transactions from JD Edwards & Movex ERP systems.
  • Consolidated category management into 5 core divisions globally, led China transition process across sourcing, procurement and logistics, 38 members across three locations in China, aligning cross-functionally globally.
  • Audited current suppliers, scorecard ranking, pricing, operational activity, value added services, compliance level, and delivery/quality performance. Reduced China-based finish goods vendors from 183 to 80 to leverage global buy and meet different compliance levels.
  • Localised all market sourcing, procurement and logistics in China, transferring balance US manufacturing component & EU small nursery to the China operation, supporting one global strategic sourcing matrix.
  • Rationalised supplier on boarding process, agreements, memorandum of understanding to protect IP and minimise compliance risk, ensuring one standard to suppliers managed by one voice.

RESULTS

  • Completed consolidation process. Improved supplier management, supplier mix, commodity-based procurement, and shared sourcing.
  • Achieved a 3% purchase price variance PPV reduction on finished goods.
  • Achieved 97.2% on-time delivery across direct indent major customer orders and stock replenishment lines.
  • Improved container utilisation by 0.9% generating a net cost savings of $945,000 across 5000 FEU’s.
  • Reduced raw material to US / Portugal plant cycle time by 20 days, impacting SO&P and inventory accuracy realising a 16% cost and 12.5% tooling reduction.

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