Future Defence Supply Chain Initiative
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Headlines: FDSCi was established to assess options for reducing the cost of the Defence Supply Chain whilst improving service levels and enhancing operational capability. Working as part of an in-house team and in competition with two major industry consortia for a preferred solution, Wallace Walker, following a far reaching review and analysis of the logistics operation, produced the winning bid. The solution proposed integrating existing government organisations and logistics activities into a single new organisation, centred upon the Defence Storage and Distribution Agency (DSDA), and transforming it through leaning, right sizing, commercialising, improving service provision and engaging industry. Committed benefits were £0.5 billion cost savings, 2 major site closures, 2,000+ (40%) staff reductions and significant logistics service improvements, including reducing delivery times from 28 to 7 days for routine demands. We were subsequently engaged to implement the solution, changing 5,000 employees from a site-based structure to a commercially-aligned business stream structure, embedding new commercial disciplines and mobilising the transformation programme. This also required us to work closely with the new Chief Executive and Board team over the final 6 months of our contract prior to a planned exit.
Technical capabilities provided: Restructuring existing organisations and business models / Performance and effectiveness studies (COEIA) / Process simulation / Benchmarking / Lean techniques / CLS principles / Organisational and cultural change / Programme management, including risk management and benefits tracking.
Duration: Jan 04 - Nov 07 (3 years). Consulting team of 3 - 8 (max) supported FDSCi over this period.
Measure of success: Implementation of the approved solution was evaluated by the MoD and the National Audit Office in 2009 and confirmed to have been delivered in full, and, further, judged a major success as a public sector transformation programme.
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