Industrial and chemicals

The current economic environment is characterized by uncertainty: international trade tensions, geopolitical instability and Brexit, to name a few. In addition, consumer expectations are changing, and regulatory requirements are constantly increasing.

Globalization and digitalization are putting the value chains of industrial companies under pressure as they face an increase in customer requirements regarding quality and availability and environmental constraints. They also need to innovate and differentiate themselves in order to continue to perform well against competitors, whether the competition is historical or due to new players. Consolidation movements are underway, as part of a race for critical size to finance ever-larger investments.

In this context, and more than ever before, the industrial sector is facing major performance and transformation challenges and must, therefore, adapt itself to cope with these developments and uncertainties.

Challenges

Industrial companies must be both flexible enough to finance their investments or external growth operations and able to continuously strengthen their capacity for innovation in terms of products and services while maintaining economic performance levels in line with expectations.

This depends on increasingly optimized and controlled operational performance across the entire value chain, from suppliers to customers, support functions and time to market.

How we can help

Argon & Co assists industrial clients in improving their operational performance in the following areas:

Optimization of customer processes and service strategy: pricing, contract life cycle, invoicing, cash flow improvement, customer relationship and service, multi-channel and digital development, service rate improvement
Cost reduction: optimization of direct and indirect purchasing costs, cost variabilization, design to value on industrial investments, optimization of shared services for support functions, lean management
Time to market acceleration: optimization of the ideation process, development, industrialization and launch of new products and services
Optimization of working capital requirements and acceleration of flows: forecasts, tactical and S&OP planning, implementation of inventory policies adapted to the specificities of the sector, load/capacity matching of resources
Operational efficiency: optimization of organizations including roles and responsibilities, staff and performance management
Change management

Industrial and chemicals case studies

IBP implementation

steel

IBP implementation

Liberty OneSteel is the only Australian manufacturer of structural steel and reinforcing products, and distributes them to 200 sites across the country.

With a new owner after 16 months in administration, the business urgently needed to review key business strategy and growth plans, and identify the priorities for change. The complex supply chain has multiple manufacturing sites and competing retail businesses, managed under different business units. This led to a culture of working in discrete silos and a lack of optimisation across the supply chain.

Project manage the design and implementation of the new IBP process
Project management of 6 stages in the roadmap; 1. mobilise, 2. design, 3. develop, 4. train, 5. pilot and 6. implement
Change management of all nine stages of the change wheel; 1. case for change, 2. stakeholders, 3. impacts, 4. communication, 5. organisation, 6. capabilities, 7. leadership and behaviours, 8. sustain and 9. benefits

Reduction in excess manned capacity of 3%
Reduction in lost sales of 2%
Price and profit optimisation resulting in EBITDA improvement of 4%
Signed off conceptual and detailed design for the new IBP process
Trained IBP teams and delivered a successful IBP go-live in October
Six monthly cycles of embedding IBP

Global capability development

Planning processes design

global packaging company

Planning processes design

Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions. Essentra focuses on the light manufacture and distribution of high volume, enabling components which serve customers in a wide variety of end markets and geographies.

Essentra needed to develop a standard repeatable planning operating model for a global implementation in markets with a focus on transitioning to an above site planning structure and changes in production strategy.

Assess the existing planning processes and capabilities
Develop a scalable planning operating model for global roll out with a change from site to market planning structure
Identify potential quick wins with detailed improvement actions
Develop the organisation structure, roles, responsibilities and capabilities required to support new processes
Develop the approach and implementation plan to support the transition to the new production strategy

Documented end to end planning processes from S&OP to material requirements planning and scheduling
Identified quick wins and areas for improvement with a clear implementation roadmap
Redesigned organisational structure with roles and responsibilities and required capabilities to support new processes
Identified global savings from changes in production strategy and developed an implementation plan

Logistics outsourcing

industrial manufacturer

Logistics outsourcing

ASSA ABLOY is the largest global supplier of intelligent lock and security solutions. One in every ten lock and security installations worldwide uses an ASSA ABLOY product. It is a global company with around 46,000 employees and annual sales close to €7.3 billion.

ASSA ABLOY’s Scandinavian market region is served from three DCs in Sweden, Denmark and Norway. Following our support to define the ideal logistics network solution for Scandinavia, the client wanted to investigate the benefits of an outsourced logistics solution provided by a third party logistics contractor to maintain service levels, but at reduced operating costs.

Define the strategic issues and advise the Board on the business risks involved in this £30m+ contract
Create the RFI and a longlist of potential vendors
Manage a shortlist of vendors through the RFP and vendor selection (operating specifications, service levels, resource and cost templates)
Manage commercial and contract terms negotiation with the selected provider, including a final business case and implementation plan

15% reduction in operating costs plus significant capital released from redundant client sites
Flexible contract to better match resources with volumes
Continuous improvement and gain share clauses to reduce costs and share in innovation and investments
3PL management fee linked to performance
Operational KPIs and contract review meetings based on defined client/3PL contract governance procedures and structure