Starsport

PROBLEM
Starsport is a major European sport equipment and apparel retailer. The company
sources most of its shoes and garment from South-East Asia and particularly from
Vietnam. After having received containers in Europe with excessive amount of defective
shoes, Starsport urged its Vietnam Procurement office to take immediate and long-term
actions to ensure the quality of the products shipped from Vietnam suppliers.

APPROACH
CEL proposed to Starsport a project to both tackle urgent quality problems and initiate
total quality management to get sustainable results:
1. Secure the shipment: stop shipping defective shoes (QC).
2. Develop Quality autonomy: implement quality management system (QA).

Secure the shipment:

 Reinforce inspection process
 Strengthen quality controls
 Review production workflow
 Develop Quality autonomy:
 Train QA & QC staff
 Develop formal communication between functions/ with customer
 Design & implement quality management system

RESULT
Overall quality improvement + 26%

Cemindo Co

PROBLEM
Cemindo Co. is one of the world leader in cement manufacturing but still a challenger in
Indonesian market. Cemindo Co. first wants to secure its current position in northern
Sumatra market, and then to develop a strategy to be competitive in other Indonesian
provinces. Logistics being major in the cement cost structure, Cemindo Co. decided to
launch a detailed logistic benchmark over Indonesian competition and assess current
and potential strategic position.
CEL being a long-time partner of Cemindo Co. regarding logistics in the region, we were
asked to support their strategy development in Indonesia.
 APPROACH
Render visible and comparable
Benchmark current logistics competitive positions:
 Investigate infrastructure, logistic market, development projects, other industry
 Understand and document the logistics systems of competitors
 Assess Cemindo Co. cement bag delivery cost and compare with competition
Evaluate GreenField opportunities
 Evaluate greenfield locations and assess their logistic viability, and environmental
constraints
 Determine the ideal logistic systems & costs from greenfields to targeted markets
 Forecast logistic evolutions (eg. Infrastructure projects) and their influence on cost.

RESULT
The deliverable of this study allowed Cemindo Co. to position itself on the market and
assess its current and potential competitiveness. What was particularly appreciated by
the Country Director was our ability to connect ground information with strategic vision:
we provided a precise visibility on total delivered cost today and in the future, for both
our client and its competitors. Our recommendations on greenfields, encompassing
logistic, geologic, infrastructure, market and environmental aspects gave the visibility
Cemindo Co. needed to take their decision whether to invest or not.
 FastMove Log Co. group

PROBLEM
As a consequence of the global financial crisis, FastMove Log Co. group decided to
freeze headcounts in all its business units, including Vietnam. In the meantime, express
mail and freight market in Vietnam was still growing, urging operations to provide more
capacity. The Country Manager of FastMove Log Co. asked CEL to increase operations
productivity to cope with the growing demand while maintaining low fixed costs.

APPROACH
“PMS, optimization, decision support”
CEL proposed to FastMove Log Co. a specific approach to explore all the productivity
opportunities over 3 aspects:
1. We developed in collaboration with operations team a comprehensive performance
management system, with clear targets in line with business requirement (+20%
productivity, stable quality).
2. We initiated and led a comprehensive improvement project, based on root cause
analysis, spot actions and quick implementation to generate significant waste
reduction.
3. One of the biggest source of poor productivity laid in the disconnection between what
Sales & Marketing promise to customers and what operations can efficiently deliver.
Consensus had to be found through cross-functional meetings, agreements,
procedures and exception management.

RESULT
After 4 months, a sustainable 20% productivity increase was obtained without any lay-
off or capital expenditure. A qualitative benefit of this project has been the involvement
of all departments toward the productivity objective. It was the 1st opportunity that
allowed every manager to break functional barriers. A new collaborative corporate
mindset had been created.

Express Log Co.

 PROBLEM
With 30% yearly growth the express logistic market in Vietnam is being very attractive
for FDI. ExpressLog Co. established in HCMC 10 years ago and see its market share
rising quickly.
A very fast growing market generates a constant need for capacity, while keeping costs
under control. ExpressLog Co., with 27% growth per year, has to build enough capacity
to allow its operations to absorb sales potentials while maintaining high service level.
The Country Manager explained that he has been making extensive sales & marketing
efforts and they were paying out. The company was on a good way to double revenue
objectives and he could not accept his operation center to be a bottle neck toward
sales. He wanted a new operation center with international equipment, standard
processes well implemented and running fast. The substantial investment (facilities,
equipment) related to project would need a quick return. Besides, he was willing to give
operations team a better sense of efficiency by establishing a 20% productivity increase
in the next 4 months. We mapped together what kind of support he was looking for:
Expertise
 Flow/ Layout
 Process
 Equipment
Project Coordination
 On Time
 Quality
 Within Budget
 Autonomy
It was matching with what CEL could do, so we agreed about timeline and budget.

APPROACH
The operation team was well aware of the challenge and ready to make the step in
changing the way they use to work. They were quite excited by the idea of truly being
contributing to a major improvement project that would bring them to an efficient and
international standard operation center. We agreed with them the following approach
and project structure.
 RESULT
Thanks to flow rationalization, lean operations, standard processes and equipment
upgrade in ExpressLog the operations capacity has been multiplied by 6 within
 4 months
 The same space
 The same resources
 10% under the agreed budget
The country director and operational team was proud of their new operation center, their
achievement and shared that they had real exciting time, a learning experience, working
with CEL team. CEL team had a memorable experience within a friendly, professional
and result oriented client.

Animal Feed Co.

PROBLEM
AnimalFeed Co. was experiencing supply chain issues limiting their growth and loosing
competitiveness in a highly competitive market. After a short diagnosis, it appeared that
the company was suffering from unreliable deliveries, high inventory, increasing and
uncontrolled cost. The company has had a strong position in livestock market in
Vietnam for many years, with a well-established brand and reputation. The CEO of
 AnimalFeed Co. asked CEL to help identify cost saving opportunities and improve
supply chain performance in collaboration with his management team.

APPROACH
”Cost Structure & Flow Analysis”
At first, CEL analyzed cost structure that could highlight priorities and potential savings.
Then CEL analyzed in/out logistics flow and identified disconnects and incoherence in
the Supply Chain. Numerous elements were redundant or not in-sync. Improvement
recommendations were made to maximize performance while having a significant cost
reduction impact.

RESULT
“1.2M$ savings & improved performance”
The cost savings were estimated at 1.2M$ along with 20% inventory reduction. In
addition to delivering expect results, the CEO particularly appreciated our pragmatic
consulting style as
 We initiated cross-functional collaboration.
 We brought a supply chain vision and a “big picture” understanding of the company
situation.
 We provided follow up, project guidelines, coaching.
 Green Elec Co.

PROBLEM
GreenElec is a European green energy producer which mostly generate electricity with
biomass fuel. Vietnam was identified as a great source of biomass fuel because of the
high density of wood processing factories in Binh Duong province. Once the decision
made to build a wood pellet plant in Vietnam, many supply chain related question
followed:
 Which suppliers to source from?
 Where the factory should be located?
 Which transport mode and storage facility should be used?
 Which road, river and sea port infrastructure would be able to handle the flow?
 Which logistic service provider should be used?
GreenElec first priority was to set up the most reliable supply chain to avoid any
shortage on the Dutch power plant side. GreenElec asked CEL to help identifying the
ideal location for the plant and to design and implement inbound and outbound logistic
system, taking into account Vietnam infrastructure constraints and development plans.

APPROACH
"Assess - Design -Implement"
Assess
 Review Infrastructure
 Compare factory locations
 Assess suppliers' logistic capabilities
 Evaluate transport and handling alternatives
Design
 Model options and simulate costs & risks
 Decide factory location
 Determine carbon footprint
 Evaluate investment
Implement
 Tender & select of logistic service providers
 Source transport and handling equipments
 Advise facilities and equipment design
 Monitor operations performance

RESULT
"...Realistic and feasible solutions..."
CEL provided:
 Visibility on supply chain scenarios and operational options
 Realistic and feasible solutions given Vietnam context
 Coherence all along the supply chain to ens synchronized, reliable and cost-efficient
flows.
 Advice on how the equipment and infrastructure should be designed to ensure smooth
logistic operations.
 Extensive network of service providers that accelerated tendering and implementation.
 Eneco
SITUATION
Our client is one of the leading energy companies in the Netherlands. Specializing in
generating power using renewable resources, our client excels in the production and
transmission of gas, electricity, heat and related services.
Our client is embarking on a challenging project establishing a wood pellets plant in
Southern Vietnam with the capacity to produce nearly 150,000 tons of pellets per
annum, supplying a power plant in Europe.
Logistics being so critical to the success of this business venture, our client requested
the support of CEL to design the entire supply chain in Vietnam.

PROBLEM
What is the ideal Supply Chain structure and the critical elements to support cost
efficient and reliable logistic operations?

APPROACH
 Conduct field survey to identify strategic suppliers, logistic providers and best location
for wood pellet production plant
 Identify the most cost efficient logistics structure for transport and storage of raw
materials (wood waste, saw dust) and finished products (wood pellets)
 Model supply chain structure based on supply chain flows, operating cost and
environmental sustainability
 Identify and model partnership needs between operators, investors and the client.
Define supply chain capabilities and KPIs to measure supply chain performance.

RESULT
We helped our Client by
 Identifying critical supply chain elements - wood waste suppliers, pellet factory location
and size, warehouse location and size, truck fleet requirement, port with necessary
equipment and barge providers.
 Offering 3 logistics scenarios based on different OPEX, CAPEX and Operational Risk
variants
 Recommending KPIs, modeled on Reliability, Profitability and Sustainability, to
measure supply chain performance
 Designing partnership model between key stakeholders - Client, Dutch government,
Operators and other Investors.

Lafarge
SITUATION
Our Client is one of the largest building material companies in the world. Headquartered
in Europe, the Client has significant presence in Indonesia.
In an effort to increase its competitiveness, our Client enlisted the help of CEL
Consulting to identify ways to increase their market share while maintaining a
reasonable level of profitability.
CEL Consulting joined with the Client to support this initiative and lead a supply chain
and operations improvement project aimed at reducing distribution cost and increasing
product availability.

PROBLEM
How can we increase our competitiveness by reducing distribution cost while increasing
product availability?

APPROACH
 Audit Client supply chain using SCOR defined performance standards
 Compare growth in the cement market versus Client shipping capacity
 Analyze capacity bottlenecks and their effect on logistics cost.
 Analyze variability at jetties (due to unreliable loading/unloading performance), and its
effect on vessel scheduling and routing
 Analyze effectiveness of existing supply chain planning process. Developed Sales &
Operations Planning (S&OP) process to improve supply chain planning.
 RESULT
We helped our Client by
 Identifying and implementing programs to save more than 3 Mn USD per year in
distribution cost by
 Identifying and implementing programs to overcome capacity limitations and increase
product availability
 Deploying S&OP process and aligning business strategy with supply chain planning
 Establishing organization wide supply chain KPIs and instituting mindset of continuous
improvement.