Selected Services & Leisure Assignments

Supply chain strategy & three year business plan

The client, a £70m subsidiary of a leisure sector group, needed a robust three year business plan to secure the investment required for its growth. The management team had limited experience of developing business plans and gaining buy-in from across the company. The client engaged Crimson to work with the senior management team to prepare the business plan, gain buy-in from the business and support the presentation to the Group Board.

Results

  • Three year business plan agreed by group board
  • Investment secured to fund growth
  • Whole business communication programme initiated
  • Site-by-site targets and measures revised
  • Buy-in across the whole business to new direction

Field force optimisation

A UK based leisure company had a field force of 270 service engineers and 250 cash collectors servicing 40,000 customer sited machines. Regional management structure meant that there was ‘patch’ driven manual planning system inhibiting geographical efficiency. Crimson & Co was engaged to improve field force efficiency, whilst reducing management and maintaining service levels.

Results

  • Productivity savings of £3m pa
  • Headcount reduced by over 20%
  • Average jobs per hour up by 15%
  • First time fix rate from 88% to 94%
  • Improved customer service

Distribution network re-design & implementation

This leisure company required major infrastructure changes to improve service and reduce costs. Crimson & Co was engaged to develop the strategy and business plans, present to shareholders and banks for funding, and carry out the detailed design and implementation. We reducted the number of fully functioning depots from 19 to just 4, plus 5 stockless outbases. Repair and configuration workshops were reduced from 12 to 4. The supply chain was re-designed to enable efficient flow-through rather than many stock holding points.

Results

  • Savings of 12% – 20% out of total cost base
  • Restructuring done with no service loss
  • 20% staff reduction
  • FG inventory reduced from 11% to 6%
  • Agile, sector-leading solution

Tendering & contract review

This UK pub sector client had been experiencing poor service and cost over-run on an open book 3PL distribution contract. There was low product availability and poor day to day management by the 3PL. The incumbent 3PL had been in place for many years; management and controls had been eroded over time. Costs were running 25% above budget. Service levels 15% points below target. Crimson & Co was engaged to review the existing contract and to confirm the actual costs and level of service failures. Crimson & Co managed the re-tendering and appointment of a new contractor.

Results

  • Benchmarks confirmed £3m – £4m annual overspend
  • Control and management process failures identified and confirmed
  • Thorough tender process identified key strategic partnership issues
  • New cost benchmarks established
  • Realistic cost savings of £3m – £3.5m pa identified

Strategic sourcing

This UK holiday company was looking to obtain maximum synergies from three spend categories; printed materials, brochure / magazine fulfilment and postal services. The client had previously outsourced all print sourcing / management & there was no in-house expertise. They needed external support to review the categories & deliver benefits. Consultants provided skills transfer as part of the project.

Results

  • Savings: print 21%, fulfilment 32%, postage 28%
  • No. suppliers: print 22 to 6, fulfilment 4 to 2, postage 3 to 1
  • Supplier base aligned to tailored marketing
  • New procurement processes established
  • Client using sourcing process for new categories