Supply Chain

Positive impact with The Whole System approach

Challenge

A multinational company in the health sector aimed to overcome in-house and external clients’ expectations with the highest performance of the supply operation, starting with the implementation of the Latam Distribution Center for the south region. The Distribution Center (DC) would assist three countries, each one with different expectations and requirements. The process between DC and the countries was not clear, and the countries were presenting complaints about the lack of visibility of the processes and the low communication levels among the parties.

Solution

We began with a plan to understand the leaders of the sectors involved in each country. We used the Value Stream map to understand the end-to-end process and find the requirements in each country and, then, at the DC. This enabled us to find improvement and quick problem-solving opportunities.

After this step, we conducted a Kaizen Event with key leaders of each country and invited the DC key leaders. We have worked with twenty leaders for three days, who represented the whole system in The Whole System approach. We solidified the shared vision of current processes in all three countries along with the DC process map. From the operation systemic view, we have worked change management, reviewed the DC implementation strategic plan, resources plan, and, together, supplemented the future process map, along with the supply operation action plan.

Result

We have invited the executive stakeholders in each country and region to take part in the final meeting of the Kaizen Event at the DC. The team introduced all end-to-end processes and the analysis conducted by the countries, enabling the decision-making of important topics for the business.

The team reached a 70% downsizing in the lead time in two of the countries and cut more than 67% in the inbound and outbound of the DC by carrying out the action plan of the three countries and the DC action plan.

The involvement of the three teams was extremely important for crafting the in-house net relationship, allowing the establishment of immediate and future actions for improving the process efficiency and problem-solving. On the third day, there were presentations for each country’s executives, promoting a systemic vision of the process and suggestions for actions to be conducted. The Whole System approach for dealing with complex dynamic situations was essential for solving the systemic problem.