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Back High-Tech - Optimized supply chain for a competitive edge
Lexmark’s willingness to review their logistics flow and implement proposed changes helped them optimise their supply chain.
Imaging solutions and innovative technologies
Order-driven dynamic transport planning, mixed containers, early supplier engagement and enhanced business process KPIs.
- Annual net transport cost savings of approx. 17%
- Significant efficiencies in container use and reduced carbon footprint
- Smaller markets more efficiently and better served
At Kuehne+Nagel, we have the pleasure to work closely with the supply chain team at Lexmark. They are passionate about their products and services, and dedicated to the success of the company. Their focus is on optimising flows and exceeding customer expectations. We were committed to helping them achieve their goals, which we strive to do for all our customers.
Therefore, we suggested that our Supply Chain Design (SCD) team conduct a series of workshops to review their entire inbound supply chain setup and provide an unbiased analysis. This mainly included components arriving from China and going to EMEA, Oceania, and South America. During the workshops, we used our tools and methodology to identify areas for optimisation, and with Lexmark's full commitment to lean processes, we set out on the journey.
Together, we began by building a common understanding of the current situation. Once this was clear, we developed a detailed business case where operational opportunities were detected and evaluated. We added all of our learnings to a comprehensive value proposition that depicted not only the current state of the supply chain, but also identified areas where improvement was possible, and the business value and risks that changes could entail.
The results of this collaboration were extremely satisfying. Lexmark managed to reduce costs by 17%, exceeding their goal many times over. They reduced lead times and the number of containers used, thus improving their carbon footprint, which is an important topic for both Lexmark and us.
In the end, this efficiency improvement project was a success. We were grateful to work closely with customers who are open to thinking about logistics in a new way, and applying our knowledge directly to everyday challenges.
Although these projects often result in efficiency improvements, cost savings and other benefits, not every project wins an award. However, this one did - the prestigious "Commonwealth Supply Chain Innovation Award".
Following this successful implementation, Lexmark continued rolling out the programme across the entire organisation. We are proud to have been involved in this important project. It is a project that is far from over - because where there are logistics, there are efficiency improvements just waiting to happen.
I believe this project was so successful thanks to the efforts of our talented global team and our valued partners. We all focused on the common goal to optimize our inbound supply chain and improve the customer experience
Brad Fruth, Project Sponsor and Lexmark Worldwide Compliance Manager