Product Management & Logistics Organization Design
Client
Our client is the leading provider of audiovisual equipment rentals, staging services and related technical support to hotels, event production companies, trade associations, convention centers and corporations. With offices in over 500 properties, they accommodate meeting planners and producers with service, equipment and support.
Executive Summary
The client engaged The Revere Group to assess their operations support function. That function encompassed:
- Product Management
- Procurement/Sourcing
- Logistics & Distribution
The project also included the direct negotiation of a new supplier agreement using a strategic sourcing methodology. The Revere Group developed a new organizational structure designed to support more rapid response to field locations, while improving supplier performance. The client adopted the design prior to the completion of the project. A new supplier contract spearheaded by Revere generated $1.5M in savings.
Business Challenge
The client was experiencing protracted fulfillment times in delivering new rental equipment to renting locations. The generated a direct loss of revenue resulting from a combination of lost business and outsourcing with third party partners. The client wanted this assessment to help them:
- Reduce the cycle time of capital expenditure processing
- Improving visibility to capital equipment forecasting
- Build a strategic sourcing framework
- Integration Business Intelligence into a future-state organization structure
Solution
The Revere Group delivered a redesigned operations support organizational structure with specific resource recommendations (including job descriptions). The organization was supported with complete future state process maps addressing all functions. In addition, The Revere Group led a strategic sourcing initiative using the new processes in order to train client resources and deliver immediate savings. Finally, the client received specific technology recommendations to support ongoing business intelligence needs.
Results
The strategic sourcing initiative in office supplies yielded a $1.5M savings directly from pure contract price reductions. The introduction of a supplier relationship methodology promises to yield continuous improvements in total cost of ownership. The client immediately implemented all organizational changes with no disruption to customer service. New processes within the organization reduced capital equipment fulfillment delays up to ten days.