Company
OM Carrelli Elevatori S.p.A., leading company in the material handling market, offers since 50 years, innovative and extremely reliable forklift trucks and internal handling systems.
In reality the success story of the company starts in Italy in 1917, with car design and continued with the forklifts trucks production since 1951. Throughout 86 years of activity, and from 1933 together with the FIAT group, this italian company has definetely written the transport history in Italy.
During the Sixties the opening towards the foreign market supports the widening of the productive structure, with the production sites of Luzzara and Bari. Also the product offer improves, with the store trucks. Levers of the of the company success are in fact research and innovation: the study and the new model design with advanced technologies and an extremely innovative design enable to realize highly competitive, qualitative and reliable products. OM Carrelli Elevatori S.p.A. is today present on the Italian market with a net of subsidiaries and concessionaires, abroad through branches and importers. The services of Spare Parts, Rents, Used sales, Maintenance and Repair complete the offer of a company that constantly supports the customer with professionalism in his most specific demands.
In a strongly competitive context, the Spare Parts Service Line chooses the rationalization, through the management and infrastructures optimization, the distribution cost reduction, the centralization of the order management process. The rationalization process took to define a Management Intelligence project that supports the internal management in the process monitoring, focused on the control in the logistic area.
The Management Intelligence Project
The Management Intelligence project, led by a mixed workteam, composed by people from the Organization and Systems and Spare Parts area of OM Carrelli Elevatori S.p.A. and SDG consultants, took to the creation of an Intelligence environment, structured as follows:
- Knowledge System concerning Sales and Purchases areas
- Performance Management System focused on the key-processes' control within the Logistic Chain
Knowledge System
The depth knowledge of the internal processes is necessary condition so that the management can monitor the key variables of the active cycle (order-delivery-invoicing). The related business processes have been analyzed, according to all the relevant business dimensions, through the realization of an integrated reporting model, characterized by the maximum flexibility of information navigation.
Sales and Purchases analysis model presents a first monitoring phase on the commercial variables (Ordered, Sales, Delivered, Sold cost,..). Further analyses are structured by customer (or supplier) and product, using dynamic comparisons for Channel Profitability, Marketing Mix, Prices, Promotions.
The daily update of a P&L account by Customer/Product completes the monitoring of the Spare Parts Service Line performance and allows to speed up the decision process, together with the improvement of information sharing among the various organizative units.
Performance Management System
Business monitoring turns out effective and prompt if some measurement tools, that allow to quantify the investment return, are used. A performance indicator system has been therefore put beside the analytical reporting, with the aim of monitoring the unusual steps inside Supply Chain Process. The attention has been principally paid to relation customers and suppliers: Service level, order evasion timeliness, delivery completeness, incidence of Returns.
The system has been progressively extended to monitor the Store stocks by Branch, with the aim of verifying management stock policy adhesion to the strategic choices of logistic costs rationalization and reduction. It will be useful to examine in detail the different strategic areas with further indicators related to the Extended Supply Chain:
- Customer Service, or the impact (direct or indirect) on the service to the customer
- Productivity/Quality, or the quali/quantitative efficiency ambit on production processes,
- Asset Management, or the area bound to the Management of the Resources (Tangible and Intangible)
- Costs, or the quantification of the investments in Production, Assets and Services
The decision support system is flexible and in constant evolution, both from the information point of view and from some analysis dimensions: the Management Intelligence model realized with BOARD allows OM Carrelli Elevatori S.p.A. to monitor its performances on customers and suppliers, using comparisons between homogeneous data, also when coming from various transactional systems, such as Baan or SAP/R3.
The next evolutions of the project could interest the profitability monitoring in the Rents area, through the analysis of a P&L account by customer/product, together with the monitoring of the internal processes and the evaluation of the relative performance.