Retail – Enterprise Asset Management Strategy

CRG Supports a Leading Big Box Retailer in the Design of an Asset Management Strategy and Operating Model Across 4 Canadian Distribution Centres

THE CHALLENGE

One of Canada’s leading retail brands developed a new Supply Chain strategy with the goal of running an integrated, productive, technology-enabled, cost competitive Supply Chain operation to reduce costs, drive revenue and improve the customer experience.

Improving the Asset Management program across the network of distribution centres was a key focus and critical enabler of this strategy.

CRG was retained by the organization to assess current state Asset Management performance across four distribution centres and develop an enterprise Asset Management strategy and implementation roadmap to enable the achievement of the Supply Chain strategy.

THE OUTCOME

Through a mixed team of consultants with background in Retail Supply Chain Operations, Operational Excellence, Data/Financial Modeling, Process Engineering and Customer Experience, CRG delivered the following:

• Designed a future state target operating model and organizational structure for the Asset Management organization, including the centralization of planning, scheduling and reliability engineering activities
• Designed future state work management processes, optimizing the use of technology (EAMS and CBM technologies) to streamline workflow, improve labour productivity and increase Maintenance wrench time by 22%
• Established a new governance model and a cascading dashboard of KPIs to enable the organization to effectively measure and manage performance
• Developed an Asset Management strategy and roadmap to improve the planned maintenance ratio from 56% to 80% and increase asset availability by 23%
• Identified $5M in total annualized savings and a roadmap to achieve a project ROI of 14X