Maximising capability
Prological was commissioned to undertake a national review that encompassed the re-engineering of our client’s distribution capability. This included a review of their Toowoomba operations based in Wellcamp.
Our client is a leading Australian manufacturer and supplier of advanced pipe systems and solutions. Wellcamp is home to one of their large manufacturing and distribution sites.
This facility manufactures high value, but low margin PPE piping systems for water and gas infrastructure throughout QLD, NT, and most of NSW. Efficiency in supply chain is what makes the difference between profitability and loss.
An opportunity arose just across the road to expand this base when a major competitor took the decision to close their manufacturing facility and exit the site over time.
The terms of Prological’s review were to determine how to better maximise the site and distribution capability afforded by the location, supporting industry and available transport networks.
Directly engaging industry
Prological spent time at the site and with supporting industry partners. Using various methodologies, we completed bottom-up modelling on theoretical cost to serve.
This led to a new distribution task specification which we took to the transport market. The new process was predicated on significant on-site changes.
The revised processes were then taken to the local and Brisbane freight company markets for consideration and responses.
Material improvements
Leveraging knowledge gained in previous Darling Downs assignments, Prological delivered a material improvement in both cost and service capabilities.
This project delivered material cost benefits to our client, much of that based on some unique characteristics of their Wellcamp location.
The project also de-constrained previous distribution capacity limitations, which in turn has increased our client’s ability to pursue more work.
