The latest contract from its multinational beverage and snack foods client has seen MRO supply chain specialist Entec International commence delivery of its full 3PMRO service within the sub-continent for the first time.
The move follows successful projects for the global brand across Asia, Middle East and North Africa (AMENA) operations, most recently in Australia and New Zealand, where Entec exceeded tough targets for reducing cost and improving productivity.
During the first phase of the AMENA project, Entec delivered a 7.3% cost reduction against the client’s multimillion-dollar MRO spend over twelve months, managing the complexity of multiple suppliers, multiple currencies and logistics along some challenging global supply chains. In January this year, phase two of the project saw Entec taking over the management and supply of a further 300 local suppliers across the client’s three operations in Australia and New Zealand.
Now, the company will be rolling out the same 3PMRO service for client operations in Pakistan.
“This major client has multiple facilities with manufacturing, packaging and utilities capital plant, all of which require a consistent and reliable flow of operating spares, to ensure stable profitable production,” Entec Director Mike Robinson explains. “In Australia and New Zealand, we have slashed spares shipments by 73%, massively reducing logistics cost and Co2 output, while a 59% decrease in process to pay transactions has avoided over US$62,000 in operational costs within the P2P cycle.”
“Entec have transformed a complex, multiple supplier process into an optimised, MRO supply chain with service and value, measured to key performance indicators, reported monthly. This has delivered management control to the client along with substantial savings. Holding a supply contract for the entire AMENA region, our team is poised to deliver similar benefits in Pakistan, with China and Latin America sites joining later this year. We see opportunity for a genuinely global 3PMRO project and the additional ROCE benefit this will deliver as spares are shared across regional or global sites will be significant”
The client’s Pakistan operations joined the contract in March 2018, with Entec collating all offshore MRO spend for the Sundar (Lahore) and Multan Plants as part of phase 1. Phase 2 and 3 will now transition into local procurement management and inventory optimisation.
“The contract is already exceeding its agreed goals, with both parties benefiting from better than planned productivity to targets, with an excellent customer relationship underpinning progress,” Mike Robinson says.
Entec’s Business Development Manager for the region, Richard Zeverona will be visiting Pakistan in September to introduce newly appointed in-country based customer relationship manager Hafiz Muhammad Kashif.
Commenting, Richard Zeverona said, “I was really excited to return to Pakistan this summer to establish the relationship with our client’s operations supply management teams, having lived and worked all over the country in the early 90s. It was great to travel back to Lahore, and rekindle my relationship with both the city and country. I have enjoyed a warm and generous welcome welcome from the management teams from Procurement, Engineering, Finance and the Stores and look forward to replicating in Pakistan our success across the AMENA region.”