Assignment
The Logistic departments were divided into 3 BU´s, with their way of working and grading employees, over 8 buildings. The demand of the different products increased in a way that a new production building was necessary to keep up with this demand. Beside this, the logistic departments needed to integrate into one logistic department in the new Supply Chain organisation. Goal was to increase OTIF to production and facilitate the different production locations in a optimum way. A temporary production location was bought and needed to go live to relieve the current production location. All the logistic departments needed to work as one to act in a flexible and efficient way to meet the production needs. Cooperation was null and in the hectic situation, priorities were not clear.
Approach
The first weeks were spent on getting to know the organization and the company culture. From the start a sunrise meeting was introduced between the management of all logistics departments together. In this meeting they discussed their topics, challenges and needs. It helped in getting to know their colleagues. To make sure the meeting was structured and efficient , the SQDIP method was used. In close contact with the Supply Chain Director the departments exchanged personal and also management to make the workforce as flexible as possible.
Challenge was to overcome the resistance to let employees go working for other departments. Transparency in communication and reporting helped in structuring the way of working and problem solving. A new production location started up and the logistic department had a key role in the successful Go Live. Management was asked what location they preferred as a working location of the different production locations. Management was divided between the locations or given an extra location.
Difficulty was the resistance in the beginning of the production managers because in the past, the logistic department was part of production and now logistic was separately managed. By explaining and cooperation of the teams they understood the new structure and they saw the necessity of the change.
Results
A robust logistic department that can cope with the changes lying ahead. Logistic management can find each other in times of need or to offer help making it a shared responsibility. Tranquility returned in the logistic department; structure was brought in the way of working. Best practice was used. All employees are aligned in the same structure with their function name and -salary.