Digital management and integrated planning –

supplying building sites in the future

Barkawi Management ConsultantsMunich • Atlanta • Dubai • Riyadh • Shanghai • Shenzhen • Vienna

Barkawi impact story special:Maximum service level and optimum inventory thanks to an innovative S&OP forecasting and supply concept

The client

Doka is one of the world‘s leading companies in the field of developing, manufacturing and selling construction formwork. With more than 160 sales and logistics venues in over 70 countries, Doka Group has a strong sales network. It is a member of Umdasch Group, employs more than 6,200 staff around the world and generates around a million euros in sales. Doka‘s growth rates have been particularly high in recent years, and its focus lies on continuously increasing its international market shares.

Availability is key on the building site

The construction industry is characterized by seasonality and quick decisions. Property develo-pers and construction companies often don‘t order goods until they run out of them on the building site. This can lead to changes in the construction schedule, and so suppliers like Doka are expected to be able to deliver on call. But the inventories that have to be kept in order to make this possible extend the cash-to-cash cycle and affect the working capital. This effect is further heightened by regionally held responsibility for the inventories,

which often leads to the Group‘s inventory-optimi- zation objectives losing priority. Doka recognized this and together with Barkawi conducted an exten-sive analysis of its supply chain to generate trans-parency about how it predicts, plans and makes inventories available, in order to optimize its logistics performance and reduce the costs involved.

Unique concept in the construction industry

Barkawi helps with an innovative concept:

An optimized warehouse network (distribution centers) enables vastly improved supply and fast delivery times for urgent customer requests.

The sales planned by the Sales department are de-termined in monthly Sales & Operations Planning Meetings (S&OP) and compared with the production capacities. This enables changes in sales expectations and bottlenecks in production and at suppliers to be predicted and proactively countered using standardized reports and KPIs. An S&OP plan resolved by the top management thus leads to massive reductions in inventory reserves and the best possible utilization of production capacities.

The plan is then managed and monitored on a daily basis using the supply chain management tool ‘Control Tower‘. When fed with data, the Control Tower enables different scenarios to be simulated, the communication of involved partners to be improved, visibility of the entire supply chain to be ensured and service levels to be raised. This makes Doka the leader in digital supply chain management.

A paradigm shift is now taking place within the com-pany: the regional sales units still do the planning, but the supply is managed centrally.

Change-management consulting by Barkawi makes a valuable contribution here, as sensitive parts of the enterprise are going through change.

Relationships between forecasting, execution and management in the Doka Control Tower

Branch

DC

Production sites

Customer

Supplier

Production supplies distribution centerProduction plan based on forecast and orders

Distribution center (DC) supplies branchesOptimized inventories

Branches supply customersFast-movers

Customer collaboration

and integration

Returns

Orders

Orders

Forecast

Consolidated forecast

Overall net requirement

CONTROL TOWER(comprehensive management)

Replenish-ment

Replenish-ment

Deliveries

Supplier

SupplyA

D

E

C

B

20

S&OP

1

9

19

11

2

8

18

12

3

7

17

13

4

6

16

14

10

515

Region

The benefit to the customer

Dr. Andreas Ludwig Spokesman of the management board at Umdasch Group AG

Ludwig Pekarek Doka GmbH executive management

Forecast precision

+20% +15% +19% -25%

Service level (on time in full)

Production flexibility

Inventories

Implementing the supply chain transformation program World Class Logistics Network (WLN) is one of Doka‘s strategic mainstays.

With its supply chain expertise and professio-nal project and change management, Barkawi made a major contribution to the success of the program, with analysis, concept design and in particular implementation.

Successful projects thanks to implementation support A highly reliable partner, Barkawi was able to ensure lasting project success – also of the software imple-mentation.

The key process improvements:

The top supply chain KPIs were improved signifi-cantly and lastingly:

Rapid decisions thanks to alerts and simulations

Comprehensive planning process in one system

Same processes and KPIs for monitoring the supply chain

Service level agreements between Sales and Production

Your contacts References

Andreas Tengler, Managing Partner Österreichandreas.tengler@barkawi.comPhone: +43 1 5121598 - 0

Gregor Gluttig,Senior Managergregor.gluttig@barkawi.comPhone: +43 1 5121598 - 0

Gregor Gluttig is responsible for the Supply Chain Management unit in Austria. Before hiring on at Barkawi in 2014, he held executive positions in a logistics consultancy and in the food retail sector. Gregor Gluttig studied industrial engineering, graduating with the degree ‘Diplom-Ingenieur im Wirtschaft-singenieurwesen‘, and he lectures part-time at Austrian universities.

Andreas Tengler has been in charge of Barkawi‘s Austrian office in Vienna since 2012. Prior to that he was Managing Partner at an Austrian restructuring com-pany. From 2002 to 2005, Andreas Tengler was responsible as VP for Finance and Controlling for the integration of five paper factories belonging to the Bauern-feind Group, into Mondi Packaging. Mr. Tengler studied economics in Germany, USA and England.

Ihre brilliante Performance ist unser Anliegen!

Barkawi Management Consultantswww.barkawi.com

Barkawi Management Consultantswww.barkawi.com

Barkawi Management Consultants is an international management consultancy specializing in supply chain management and after sales services. It was founded in 1994 and today employs more than 200 staff at venues in Munich (head office), Vienna, Riyadh, Dubai, Shenzhen, Shanghai and Atlanta. Barkawi‘s consulting clients include global enterprises with logistically complex business models, such as BSH Hausgeräte, Daimler, DB Schenker, Porsche, Samsung, to name just a few.

Excellence in supply chain management

Barkawi‘s strict focus on supply chain topics leads to outstanding and sustainable results in projects with specific challenges. Our principles of ‘rolling up our sleeves and taking action‘ and ‘not making any de-cisions without well-founded figures and analyses‘ characterize our work. Because numbers, data and facts give us and our clients the certainty we need to make the right decisions!

Based on sound data and a profound understanding of our clients‘ operational situation and business processes, we develop new concepts and strategies, optimize processes and organization and then im-plement these changes. Because only with actual implementation can solutions reap results, and that is a another big USP of Barkawi Management Consultants: we combine consulting with true operational responsibility!

Awards and distinctions

In the eyes of many companies, this combina- tion of expertise, strategic consulting and taking on responsibility for the operational realization sets Barkawi apart from its competition. Barkawi repe-atedly achieves top rankings in the major consul-tancy evaluations in Germany. Barkawi has gained many distinctions, for instance as ‘Hidden Cham-pions of the Consulting Market‘ and as the No. 1 in Supply Chain Consulting in the Best of Consulting competition run by the weekly business magazine ‘WirtschaftsWoche‘. The business magazine ‘brand eins‘ counts Barkawi among Germany‘s best consul-tancies – in the field of supply chain management Barkawi won with a huge lead over the big names in the industry!

Barkawi Management Consultants GmbHSeilerstätte 11/131010 Vienna Austriaofficewien@barkawi.comPhone: +43 1 5121598-0