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      Logistics consulting and operational audit

      Operational audit and logistic consulting from KLS is an unbiased analysis of the current state of the company’s whole supply chain with the involvement of the best experts in their field!

      The operational audit from KLS is:

      Неупереджений аналіз поточного стану всього ланцюга постачань компанії, включаючи:

      • Analysis of relationships with suppliers and customers, customer service management
      • Demand and inventory management
      • Management of warehousing and transport facilities
      • Manufacturing planning and management
      • Efficiency of enterprise infrastructure use, including information systems
      • Audit of competencies and efficiency of operational staff

      The audit answers the following questions:

      • Current state of operational efficiency of the business
      • To what extent do current costs correspond to the best indicators of the industry?
      • How to optimize the level of customer service and the cost of the supply chain?
      • Growth area of competencies of the staff

      Effect of operational audit and consulting:

      • Reduction of operating costs by 10-25%
      • Reduction of costs for enterprise, while maintaining the level of customer service by 10-20%
      • Increasing the productivity of the warehouse without increasing costs up to 50%
      • Reducing the financial burden on the company by improving the turnover of goods and inventory management by 10-35%
      • Implementation of the system of personnel motivation and process management by indicators (KPI & OKR)
      • Implementation and launch of information systems (WMS, TMS, ERP, implementation of electronic document management)
      • Reducing staff turnover
      • Optimal solutions for outsourcing operational processes
      • Mentoring and development of individual staff development plans

      Implemented projects

      Project duration - 10 weeks

      Logistics audit. Distribution

      Project Objective: The business process audit of the logistics supply chain of the FMCG distributor

      Client: A company with 20 years of experience, representing global brands, cooperates with national and regional networks. Presented in more than forty cities of Ukraine

      Result:

      Demand forecasting:

      • 30% reduction in demand forecasting costs
      • Reduction of losses from lost sales not less than UAH 100,000 / month.
      • Increase in sales by UAH 0.3-1.0 million by improving the accuracy of the forecast
      • Reduction of the target level of inventories to 15 days

      Storage:

      • Savings of UAH 500,000 / year due to acceleration of unloading and acceptance processes.
      • Savings of UAH 400,000 / year due to optimization of business processes
      • Savings of UAH 1,200,000 / year due to increased warehouse productivity

      Distribution logistics:

      • Save 20% of route time, due to the formation of a routing system
      • Increasing the profitability of routes by 200%
      • Savings of UAH 200,000 / month due to the consolidation of routes
      • 30% reduction in fuel costs
      • Increase in the level of customer service from 96% to 98%
      Project duration - 10 weeks

      Operational consulting. Retail

      Project goal: Reengineering of the distribution center. Increasing the capacity of the warehouse and its capacity

      Client: Multi-channel retail store, one of the leaders in online commerce. Presented in 140 cities of Ukraine. About 8.5 million customers annually

      Result:
      Storage:

      The analysis was performed:

      • Topology of warehouse
      • Movement of material flows
      • Bandwidth of the warehouse

      Effect of implementation of recommendations:

      • Rational placement of functional areas. Uniform and uninterrupted flow of material flows
      • Increase employee productivity by 30%
      • Placement of goods according to ABC-XYZ analysis
      • Increasing the capacity of the warehouse by 40%

      The project was paid off in 36 months

      Project duration - 8 weeks

      Operational consulting. Production

      Project goal: Improving the efficiency of inventory management system

      Client: A group of manufacturing companies with 17 years of experience, a leader in the dairy industry of Ukraine

      Result:
      Inventory and procurement management:

      • Increasing the level of customer service from 93% to 98%
      • The ABC-XYZ analysis is carried out, the stock management strategy for each commodity group is formed
      • The insurance level of stocks for all product nomenclature is calculated
      • The calculation algorithm with the possibility of its integration into the ERP-system is developed, which allows:
        • Minimize manual data entry
        • Ensure the accuracy of data (minimize errors and inaccuracies in orders)
        • Save all current and past data to ensure full transparency of the process
      Project duration - 12 weeks

      Logistics consulting. Distribution

      Project goal: Development of a package of standard operating procedures, description of warehousing operations and calculation of warehousing needs and determination of additional equipment needs.

      Client: National Distributor. Leader in the industry segment.

      Result:

      Storage:

      • A package of standard operating procedures for warehouse operation is created
      • The need for types and quantities of storage equipment and additional equipment is determined
      • Performance standards for employees have been developed
      • The optimization of the topology of storage space and the calculation of the structure of storage cells
      Project duration - 8 weeks

      Logistics consulting. Warehouse logistics

      Project goal: Development of the concept of warehouse transition from outsourced management to self-management.

      Client: Global provider of logistics services, represented in more than 150 countries, heading the TOP of the largest logistics operators in Europe and more than ten years is present on the Ukrainian market.

      Result:

      Storage:

      • The analysis of the current warehouse infrastructure and of the volume of current and potential cargo flows is carried out
      • The concept of a new warehouse (topology, zoning, types of storage) is developed
      • The required area of ​​the warehouse and its optimal location is calculated
      • The need for racking equipment and the number of cargo storage equipment was calculated
      • Investment calculation has been carried out
      • Changing the concept of warehouse management is more than double revenue.
      • The mode of operation of the warehouse 24/7
      Project duration - 12 weeks

      Operational audit. Freight forwarding

      Project goal: Development of the concept of business process optimization of the commercial department of an international freight forwarding company for business scaling and opening a representative office in Europe

      Client: International freight forwarding company. Specialization – multimodal, consolidated cargoes and transportation of oversized cargoes

      Result:

      Expedition:

      • An analysis of the current business processes of the commercial department of the company in the areas of sales and operational support of customers
      • A system of KPIs and motivations for employees of the commercial department has been developed
      • Successful transformation of processes is carried out
      Project duration - 2 weeks

      Operational audit. Production

      Project purpose: Audit of business processes of an international manufacturer of the woodworking industry in the areas of production, warehousing logistics and the activities of the commercial department

      Client: International manufacturer of entrance and interior doors with more than 15 years of experience in the Ukrainian market

      Result:

      Production and warehousing logistics:

      • The analysis of business processes of production, structure and activity of commercial department is carried out
      • Recommendations for cost optimization and increase of warehouse productivity are developed

      It is proposed to integrate CRM and WMS systems

      Project duration - 10 weeks

      Operational audit, logistics consulting. Distribution

      Project goal: Audit of business processes of a national pharmaceutical distributor in the areas of warehousing and distribution logistics

      Client: National farm distributor with more than 20 years of presence on the Ukrainian market. Actively cooperates with national and regional pharmacy networks

      Result:

      Storage:

      • Business process analysis, budget structure formation and outsourcing strategy development
      • Analysis of the structure and dynamics of operating costs
      • Reengineering of warehouse complex topology, warehousing processes, implementation of reporting and system of efficiency and motivation indicators

      Distribution logistics:

      • Analysis of delivery routing system, profitability and optimality of routes
      • Analysis of the organization of fuel purchases
      • Analysis of the structure and dynamics of operating costs
      • Analysis of the feasibility of maintaining its own fleet
      • Analysis of business processes to control the passage of routes
      • Analysis of the effectiveness of information systems, reporting and KPI systems
      Project duration - 9 weeks

      Operational audit, logistics consulting. Warehousing services

      Project goal: Audit of warehousing business processes and operational efficiency in the warehouse of 3PL-operator

      Client: Regional 3PL – an operator that provides services of responsible storage, assembly, pre-sale training and customs licensed warehouse services

      Result:

      Storage:

      • Analysis of operational business processes, warehouse topology and existing constraints
      • Calculation of the cost of the service of storage and processing of a commodity unit
      • Revised and reformulated service catalog
      • Priority customer profiles and the optimal portfolio structure of such customers are formulated
      • The volume of sales of services has doubled, due to an increase in the number of processing operations
      Project duration - 4 weeks

      Operational audit, logistics consulting. Warehousing services

      Project goal: Designing the composition of a leading distributor of building materials.

      Client: One of the largest distributors of building materials.

      Result:

      Storage:

      • The analysis of current business processes is carried out
      • ABC-XYZ – assortment analysis
      • Creation of functional zones, for the sake of the synchronized, uniform, and uninterrupted flow of material flows
      • Improving employee productivity
      • Increasing the capacity of the warehouse by 60%
      • Developed a system of KPIs and motivations for employees
      • Recommendations for optimal storage location are formulated
      Project duration - 8 weeks

      Operational audit, logistics consulting. Warehousing services

      The purpose of the project: audit and optimization of the warehouse of the manufacturer of wall coverings.

      Client: an international company specializing in the production of wall coverings.

      Result:

      Storage:

      • A package of standard operating procedures for warehouse operation has been created
      • The prime cost of processes in a warehouse is defined
      • Identified factors that affect the cost of placing finished products in the warehouse
      • Transformed inventory management strategy for each individual client
      • A system of KPIs and motivations for employees is developed
      • Performance standards for employees have been developed
      • Recommendations for optimal placement of warehousing products are formulated.

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