MAN PrimeServ was facing significant potential growth in its business and had discovered growing challenges in offering customers a competitive service. Based on detailed analyses, the supply chain had been identified as a potential competitive advantage, but improvements were required in order to benefit from the market potential. MAN PrimeServ is the service brand for all MAN Energy Solutions products.
The results gained from a new supply chain included among others a three-digit stock reduction in DKK million, internal cost reductions due to optimised processes, a +10% reduction in purchased cost prices, significant reductions in production costs, an optimised supply chain and the ability to handle significant growth in sales (+15% yearly growth).
The project optimised their supply chain delivery accuracy, which improved from 60% to 90%. Lead time improved from 6 to 2 weeks, working capital was reduced, and significant cost savings in procurement programme were realised.
Three-digit stock reduction in DKK million
Internal cost reductions due to optimised processes
+10% reduction in purchased cost prices
Significant reductions in production costs
An optimised supply chain and the ability to handle significant growth in sales (+15% yearly growth)