Cosmetics Industry:3PL review and integration project
Service level performance needed to be improved as well as a stronger awareness and management of cost controls. Initial analysis determined that the current vendor reached capacity and was unable to support the growth plans of this business. RFP was initiated in search of appropriate 3PL vendor.
RFP review and vendor selection were completed within 2 months, followed by integration project planning. This incorporated a full transition of the business from current vendor to new vendor within 4 months.
The transition plan was detailed to support new site establishment, layout configuration, stock relocation and full stocktake. Clients ERP integration with 3PL's warehouse management system was undertaken in a testing environment then cut over to a live production environment on schedule. Prior productivity levels were achieved within 2 weeks of handover
- Customer service level was in constant decline over the last 2 years
- Existing 3PL provider did not have ability to meet customer's growth expectations.
- Service level agreement did not exist and issues management was reactive
- Cost increases by 3PL provide could not be justified in a low customer service environment.
- Regular systems interface issues and failures created data integrity issues.
- Undertook a 3PL assessment, including contract review through to all processes & KPI's
- RFP was developed and issued to market for new 3PL vendor, vendor was selected
- Project managed the entire transition from current provider to new 3PL.
- Client and vendor contract incorporated a service level agreement and review cycles.
- New 3PL operation live within 4 months and achieved full operation capability by week 3.