Develop, implement and deliver operation EDC Machine Parts

The client is an internationally operating logistics service provider. For a manufacturer of machines and machine parts, a European distribution center needs to be set up in the south of the Netherlands.

Customer Anonymous
Segment Logistics
Develop, implement and deliver <span>operation EDC Machine Parts</span>

Assignment

The assignment was to perform the project management for the implementation of the European Distribution Center, i.e. fit-out, set-up, and delivery of the current operation. In other words: integral implementation of the European Distribution Center for the customer of the 3PL party and making it operationally ready for the roll-out to all European customers/dealers.

Problem definition

Scope of the project: Arrangement of the inbound, storage, and outbound activities in the areas of operation, customer service, transport, customs handling, and hazardous materials

Even before the start of the project, it was known that the lead time would be short. Chosen approach: with a compact, experienced project team, clear actions were immediately set out in parallel and there was 1-2 weekly coordination including coordination/decision-making via the Steering Committee.

Complicating challenge: COVID-19 worked almost exclusively at a distance for the first 4-5 months. This went well because of the short lines of communication and frequent communication. This did require extra attention and commitment from the stakeholders.

  • Bottlenecks -> Customer had engaged an external 3PL carrier service for the transport modes. However, this party was not at all connected to the agreements and processes between Client and Customer. A lot of remedial work was required here
  • Challenges -> at the start of the project there was virtually no data (fact-based) known. Mitigating actions: site visits to the customer (also via videos remotely) and own measurements upon receipt of goods

Approach

The project team was composed of the following work streams:

  • Planning/budget monitoring/quality + communication to the customer during the project phase
  • Facilities -> hardware/equipment
  • Hardware IT
  • P&O (organization deployment)
  • Process & Systems (IT Software)
  • Operations
  • SHEQ

Communication structure set up on weekly basis.

Implementation is rolled out in 3 phases: (1) Go Live Inbound process, (2) roll out Outbound Process, and (3) further ramp-up of volume and VAS operations

Worked closely with local site management to implement the customer properly. Additional complication was that the customer is based in the UK and therefore virtually impossible to get across, so the project on the customer side was largely managed via Video and LiveStream communication.

Results

  • Project delivered in 11 months within time, budget and quality
  • Project delivered within 80% of the prepared project budget
  • Conditions in the area of organization (employees trained and prepared), ICT (WMS system already set up for final situation) and operation (SOPs (procedures) already completed for future expansion of the customer.
  • Besides setting up the Distribution Center (internally), the customer also had an integral external area built and set up -> fully integrated with the EDC
  • Customer satisfied with delivered results -> including preparations for the future