SUPPLY CHAIN CONSULTING

Supply chains play a critical role in helping companies achieve growth objectives. In today’s markets, companies are increasingly challenging their supply chains of multiple dimensions, including flexibility, cost reduction, predictable risk management customer service levels. Our supply-chain consultants help ensure that our client’s supply chains are a source of competitive advantage for meeting both short and long-term objectives.

Our services are differentiated by their end-to-end, value based approach. We work in a broad number of industries and address key business issues such as:

We also drive competitiveness through:

FEASABILITY AND TRADE-OFF STUDIES

An investment or strategic operational change should be approached soberly and with impartiality. Commonly, it is valuable to contract the feasibility or trade-off scenario to a third party with little or no vested interest in the outcome in order to ensure the study’s validity. By engaging CEC as a consultant, you will receive a professional set of recommendations based on sound research, and a conservative approach to assumptions and data.

 

Chinese Factory Feasibility – Canadian Paint Sprayer OEM

USD$200K feasibility project, which CEC secured 75% financing support from Canadian International Development Agency (CIDA)

Intent of the study was to determine the feasibility of moving all manufacturing to China, while maintaining international (ISO) quality standards, and adhering to the policies and procedures currently undertaken in Canada (i.e. social, environmental).

CEC’s scope of work included:

• Initial market assessment on sales channel opportunities within Asia and China
• Representation at trade shows and conferences to quantify market opp.’s
• Local and regional environmental assessment
• Local skills, training and educational assessment for employees
• Local and regional supply chain assessment
• Social assessment

Upon completion, the factory was established under a new joint-venture with a partner of CEC who funded 50% of the costs.

Quality was maintained, and the products sold into North America, Europe and Asia; with a large increase in profitability.

Within 3-years the factory, its assets and contracts were acquired by a large American public company for a massive return on investment.

OUTSOURCING SERVICES

For years, companies have been leveraging CEC’s ties and project experience in the engineering and manufacturing sectors to out-source their fabrication to a third-party and become asset lean or asset neutral.

Production equipment and facilities are usually the most significant assets appearing on a company’s balance sheet. The fundamental aim of lean is to increase throughput dollars using the existing, or even less, capital assets. When equipment and facilities are not used effectively, it results in inefficiencies, insufficient capacity, overtime, additional equipment purchases, poor customer satisfaction and necessary facilities expansion. Many business plans and cash flows can be greatly improved by divesting this process and outsourcing production

CEC has assembled teams, equipment and partners to facilitate seamless transfer of roles and responsibilities without incurring production hiccups or drops in quality. Our supply-chain group is experienced in implementing and measuring quality assurance programs/certifications, vendor identification and partnership, autonomous and preventative maintenance measures, and fabricator training and inspection test protocol development.

 

Albertan Electrical Equipment OEM – Contract Manufacturing/Outsourcing

Successful outsourcing of the fabrication process of a specific electrical plug component that had initially been priced out of the Canadian marketplace

• CEC was able to identify a contract manufacturer which would secure intellectual property, provide the Canadian-co. exclusivity on the product.
• The Canadian-co. was able to compete in Canada after the outsourcing project was complete, and is now retailed throughout the country in numerous home-hardware stores.

MANUFACTURING JOINT-VENTURES

In cases where there may be a direct synergy between your organization and a CEC-held affiliate or partner company, co-investment and feasibility of joint-venture with a focus in a particular sector or mix of products can be a profitable solution for both parties.

This could include outsourcing of your manufacturing facility’s management and/or quality assurance, inspection platform, design and construction of a jointly-owned facility, or leveraging CEC’s existing base of production for custom jobs, contract work or ongoing partnership.

 

Mineral Concentrate Transportation Plan

USD$1M+/month in mineral concentrates to be shipped from the U.S.A. to a smelter in East Asia; the Client required a strategic, vendor-neutral plan to objectively assess their options and costs

CEC’s services were contracted to investigate and deliver the following scope of work:

• Analyze the options available to assemble a supply-chain, including: direct haulage, drayage and trans-loading, and port of departure.
• Issue RFQ’s based on CEC’s best assessment, and receive, rank quotations from all vendors.
• Select best options for the client and determine expected USD$/tonne for shipping to use in budgeting, feasibility and investor pro-formas.

SOURCING AND PROCUREMENT STRATEGY

Sourcing and procurement is in a period of radical and rapid change that is disrupting how businesses view it as a function. Part and parcel to this is the need for new strategies, skills, knowledge and tools for today’s and tomorrow’s challenged and opportunities.

 

Building Diagnostic Tool OEM – Component Sourcing

USD$1M+ in product sourcing and procurement of Asian-based fabricated internal components for Canadian manufacturing, supply-chain. The company was challenged with sourcing products from Asia that consistently met the minimum acceptable quality standards, arrived on-time, etc.

CEC was contracted to manage the procurement of these components, and achieved the following outcomes:

• Successfully negotiated payment upon receipt and acceptance of the products (based on QA/QC guidelines).
• Decreased the component non-conformance rate.
• Decreased the rate of missed shipping deadlines and arrivals.
• Lowered the costs to the client.
• Improved the relationship between the vendor and the buyer.