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Operational excellence in logistics has become the standard with ever shorter lead times, the expectation of zero-defect execution quality and the permanent constraint of cost optimisation. These three requirements are also part of a constrained environment linked to environmental, social (difficult working conditions) and regulatory concerns.

In this context, logistics must be reinvented to guarantee the service promise at the best cost and contribute to a company’s competitiveness.

On a strategic level, operational excellence in logistics requires the regular and continuous redesign of the service strategy towards customers (internal/external) and the optimisation of distribution networks to minimise cost-to-serve.

On an operational level, the optimisation of warehousing and transport operations involves thinking about automation / mechanisation of warehouses and optimisation of execution processes. There is also the consideration of the use of new digital technologies (IoT, big data, RPA, robots) that offer an innovative way to challenge established schemes, better plan resources, industrialise logistics practices, accelerate change and allow a performance leap in terms of productivity, quality, and customer service.

Finally, these changes must be accompanied by a review of the logistics organisation; developing new professions and roles, strengthening the skills and professionalism of teams and improving working conditions.

Get in touch

Nicolas Gellé

Partner

Phone +33 (0)1 55 46 13 00

Email logistics.france@argonandco.com

Get in touch

Jon Gibson

Associate Partner

Phone +44 (0) 845 644 6972

Email logistics.uk@argonandco.com

Logistics case studies

New automated Cash Centres for Banque de France

New automated Cash Centres for Banque de France

Banque de France is responsible for ensuring the monitoring, the quality, and the robustness of banknotes and coins distribution.

In France, those activities are performed in about 60 cash centers throughout the country.

The Banque de France project consisted of building two new automated large cash centers near Paris and Lille.

Our role

  • Study of flows and processes
  • Definition of relevant automation scenarios
  • Define the target concept of the intralogistics system (AS/RS for pallets and boxes, palettizing robots, AGVs, …)
  • Formalise the intralogistics program, in relation to the directions of cash activities, and real estate project
  • Assist in the commissioning of the delivered system, staff training and start-up

Results

  • The two new automated cash centers are now running and fully operational, and they replace eight traditional cash centers
  • Elimination of almost all manual logistical activities, resulting in a significant improvement of working conditions (removal of painful tasks), and significant productivity gains
  • Project awarded with the “Grand Prix” of “Kings of the Supply Chain” in 2019 (Supply Chain Magazine)

Optimisation plan for a logistics service contract : luxury textile sector

Optimisation plan for a logistics service contract : luxury textile sector

A fast-growing luxury textile brand has changed logistics provider.

The start of the new contract resulted in a deterioration of the service provided to wholesalers and shops. This was mainly caused by a lack of alignment what service would be provided during the call for tenders and the preparation of the contract. start-up.

The provider had made significant efforts to upgrade the service, but the brand wanted to involve a consultant to optimise the operation of the service before the arrival of the new collection.

Our role

  • Understand the operational difficulties encountered
  • Identify and formalise improvement actions in progress with the client and his service provider
  • Complete, consolidate, prioritise and phase the action plan
  • Pilot the progress of the action plan for 3 months to secure the implementation of priority actions and secure the start of the new collection

Results

  • Creation of a common and shared action plan
  • Distribution of the implementation of the action plan on several well-identified operational managers responsible for reporting on the progress of their actions
  • Fast and visible results in the warehouse, as well as by customers (e.g. a sharp decrease in the number of complaints, …)

Logistics outsourcing : Pharmaceutical industry

Logistics outsourcing : Pharmaceutical industry

IPSEN is a pharmaceutical company with an ambitious growth project (Turnover: 2,2B€ in 2018, 3,2B€ expected in 2021).

In this growth context and with major external ongoing projects impact (such as Serialisation and Brexit), the company wants to set up a new warehousing hub with the leader of pharmaceutical logistics in France, CSP.

Our role

  • Lead negotiations and support contract writing with the logistics services provider
  • Secure the planning and the outsourcing project
  • Define the future organisation and the execution processes
  • Coordinate all project stakeholders (Ipsen, CSP and IT)
  • Identify impacts and mitigate risks on all pharmaceutical processes and ongoing projects

Results

  • Execution processes and organisation designed jointly with the logistics services provider
  • Negotiations lead, achieving  10% savings on logistics costs
  • Agreement reached upon a robust contract for Ipsen
  • 3-months ramp up planning and detailed transfer plan defined
  • Go Live secured