Case Studies.
DELPHI Technologies Inc.
Project: Premium Freight Utilization
Client Business challenges:
Delphi wanted a review of premium freight usage at a Midwestern component factory that was experiencing material and capacity limitations when performing value-adding processes to a purchased part. Capacity limitations had required the use of premium freight to transport the component to foreign manufacturing facilities to complete the processing and prevent work stoppage in the Midwestern facility. In conjunction, the business unit was also interested in an overview of the potential milk run logistical lanes between suppliers and partner installations in the Midwest region.
Approach and Solutions:
Spartan Consulting
- Analyzed premium freight usage for the facility based on different carriers, modes, lanes, dollar values, weights and volumes.
- Identified opportunities for consolidation of shipments between several facilities and across numerous shipping modes.
- Recognized and quantified potential cost savings from moving some shipments from higher cost modes to ocean freight.
- Applied the principles of economies of distance and scale to identify same-day shipments for possible consolidation.
- Identified and segregated routine shipments for movement on scheduled milk run lanes.
- Forecasted trade-off costs as they apply to increased inventory and decreased service as material is shifted to less costly and slower transportation methods.
Results
The above information, along with details on total logistical network costs allowed Delphi to shift non-critical components to cheaper transportation modes and experience cost savings from a decrease in premium freight.
MSU HealthTeam
Project: Supply Chain Management Assessment
Client Business challenges:
MSU HealthTeam is the faculty group practice within Michigan State University, with both primary and specialty health care service providers. Affiliated with the College of Human Medicine, the College of Nursing and the College of Osteopathic Medicine at MSU, MSU HealthTeam’s providers are active in both teaching and research.
MSU HealthTeam has two pharmacies; the primary is located at the Clinical Center and is one of the most relied upon departments in the network. Customers, both campus employees and MSU HealthTeam patients, depend upon the Pharmacy for their over-the-counter (OTC) and prescription drugs. The pharmacy’s inventory can consist of up to 10,000 different OTC, generic and brand drugs in varying dosage amounts. Maintaining this inventory is essential to satisfying their customer medical needs.
Approach and Solutions:
Spartan Consulting, Inc. was contracted by the MSU HealthTeam to perform three main tasks: 1) complete a supply chain model of Clinical Center Pharmacy, 2) evaluate the QS1 system to determine its current relevancy, and 3) analyze and document procurement and inventory policies as well as build a foundation to recommend solutions to improve inventory flow, turnover and carrying expense. Over the course of the engagement, our staff met with and monitored members of the pharmacy staff. In addition, we performed outside research where necessary. Our intentions were to utilize our previous experience along with the knowledge we are attaining in our coursework to the benefit of the MSU HealthTeam.
Results
As a result of our efforts, we were able to present the MSU HealthTeam with seven process maps of various pharmaceutical operations. In addition, we identified six potential replacements for the current QS1 system, outlining the two best options. And lastly, we provided eleven recommendations for the improved operations of the pharmacy unit.
Jackson National Life Insurance
Project: Marketing Plan for Business Continuity Program
Client Business challenges:
Jackson National Life (JNL) is a subsidiary of one of the largest UK insurers (Prudential plc.). It offers low cost financial services (Fixed, equity indexed and variable annuities) and life insurance products through Jackson National Life Distributors (its subsidiary and wholesale distribution arm), banks, regional broker/dealers and independent agents.
The purpose of the Marketing Plan was to develop a feasible strategy to enter the business continuity services that will recuperate, as much as possible, the yearly fixed maintenance and facility costs as well as any capital investment needed to operate its Lansing business recovery facility. JNL’s core business is providing financial services and life insurance products. Business continuity is not a core business for JNL.
Approach and Solutions:
Spartan Consulting, Inc. was contracted by the JNL to conduct a Situational Analysis that included: 1) Company Analysis, 2) Competitor Analysis 3) Customer Analysis/Market Segmentation. Interviews with JNL personnel and an analysis of readily available information, including 10K filings, were conducted as part of the Company Analysis. The Competitor Analysis consisted of telephone interviews with established business recovery firms, consulting groups, and industry experts. We applied size and industry criteria in determining potential customers for this service within the Mid-Michigan area for the Customer Analysis/Market Segmentation. These potential customers were interviewed by telephone to determine what type of business continuity programs they currently have and what their level of interest would be to JNL’s offerings. Based on the findings from the Situational analysis, SCI developed a Marketing Plan that presented several potential strategies that JNL could pursue to capture this segment.
Results
Based on the information collected during the Situational Analysis and the strategies presented, SCI recommended a Marketing strategy that would compliment JNL’s available business continuity resources and services with potential customer needs in the Mid-Michigan area and that would recuperate, as much as possible, fixed costs and capital investments with the least amount of risk to JNL.