Companies face mounting pressure to transform their distribution operations to keep pace with ever-growing customer expectations and competitive pressure. But the design and implementation of new distribution facilities, or expansion of existing ones, are large, complex, capital projects that place tremendous pressure on the company.
These projects require orchestrating thousands of design, engineering, implementation and startup tasks across dozens of suppliers, service providers and agencies. There is a real risk of gaps and misunderstanding unless stakeholders across multiple business units are fully engaged, aligned and committed to their implementation roles. And with technology and supplier landscapes changing rapidly, it is challenging to find suppliers, evaluate their qualifications, negotiate the best terms and manage their performance. Skilled technical and project resources are scarce. And your ongoing daily operations demand the full time attention of management.
How do you fulfill your promise to the board without major cost overruns or performance issues? And will any of your suppliers take responsibility for more than their small part or deliver system-wide results?
What is the Solution?
A project of this scale requires a different approach. It starts with a perspective that this is a holistic change effort, not simply a technical one, nor a simple integration effort. The work of dozens of suppliers and service providers must be orchestrated, and thousands of design, engineering, implementation and startup tasks must be completed on time and on budget. But equally important, associates and management must understand their new roles, and they’ll need new ways to measure and incent behavior. To accomplish all that takes broad expertise that goes beyond design, engineering and systems skills. The project will require experience in labor management, project management and procurement.
And the magnitude of the capital investment will require sophisticated sourcing and procurement to ensure that quality components are procured from the best supplier at the most competitive cost.
Integrated testing and training of the entire solution will be needed to make sure the information, material and people all work together seamlessly.
Implementation projects incorporate complex information technology and thousands of components, subsystems and controls. Dedicated project management resources whose scope spans the entire project lifecycle are needed to mitigate the risk of disruptions or delays.
Finally, you need a single accountable partner who will making sure the final operation meets the business and financial expectations, and not just the technical specs.
Fortna Can Help
Fortna’s Distribution Operations Implementation Service gives you a single accountable partner to orchestrate the thousands of tasks required to help you bring a new distribution operation to life. We oversee the project from design through start-up through ongoing support to ensure the new operation is delivered on-time, on-budget and fulfills the business case used to justify the investment. And at every step along the way, we prepare your team to successfully lead the new operation into the future.
Integrated Design and Engineering Design and engineer a solution that addresses all the components of success – facility, material handling equipment, distribution systems, processes, organizational needs, and engineering – so you will have a holistic solution, not just a technical one, customized to your unique business.
Material Handling Equipment Procurement Source and procure equipment directly from more than 300 suppliers globally to eliminate expensive middlemen and leverage purchase power to get you the right equipment from the right supplier at a competitive price – minimizing risk and maximizing value.
Material Handling Implementation Orchestrate the thousands of tasks and dozens of suppliers to ensure an on-time and on-budget installation of material handling equipment in sync with the overall implementation plan.
Supply Chain Execution Systems Implementation Turn the promise of the software into value by making sure all the distribution systems support the overall business goals and metrics.
Organization Preparedness Ensure all stakeholders and teams are working together for the common purpose of driving change and sustainable results.
Integrated Training Train every person – from associate to supervisors to support staff – on how to run the operation and troubleshoot issues.
Integrated Testing Conduct progressive levels of testing to ensure the solution operates seamlessly and is ready to meet the business requirements.
Go Live and Transition Manage and minimize the ramp-up to becoming a fully-operating facility with sustainable performance that meets the performance goals.
Program Management Turn all of the tasks and complex interdependencies into one cohesive, integrated program that is delivered on-time and on-budget and delivers the promised results.
Difficult to manage thousands of tasks.
Organizational silos create risk of implementation gaps.
Significant consequences for wrong step.
Hard to manage procurement effort and select best suppliers.
Lack of resources experienced in advanced distribution technologies and large-scale program management.
Hard to find a partner who will take accountability for meeting a business case.