Nufarm
Adopting a real-time, data-driven approach to operations leads to $3 million in savings
Adopting a real-time, data-driven approach to operations leads to $3 million in savings
Our Impact
Nufarm is a partner to many agricultural success stories across the United States and Canada. Farms depend on its products to grow their crops and their businesses. So when the company wanted to deliver better services to its customers through a real-time, data-driven approach to operations, executives knew West Monroe could help them on their journey to becoming a more digital organization.
Our multidisciplinary team produced comprehensive assessments, action-ready recommendations, and execution support to:
- Replace existing technology that wasn’t providing the right data and insight on the company’s operations
- Prepare to implement a warehouse management system
- Improve manufacturing and supply chain processes to maximize employee productivity and customer satisfaction
This work has delivered tangible value beyond initial expectations—each step of the way.
$2M
Anticipated distribution savings over 5 years by moving to a new 3PL solution
$1M
Anticipated annual savings by reducing overtime and eliminating one packaging shift
30% +
Expected improvement in inventory accuracy
The Full Story
The Challenge
Nufarm’s 3PL service provider proposed implementing a warehouse management system to improve inventory accuracy and reduce write-offs. But Nufarm first wanted to understand how the investment would help the company shift to a customer-centric organization and create value. At the same time, executives also wanted to make sure they were employing the right practices around data quality and governance, process documentation, and workforce management within their own manufacturing and distribution operations to become more agile and make decisions with real-time information and accuracy. That’s where we came in.
An Undeniably Different Approach
We mobilized a multidisciplinary team with industry, supply chain, workforce operations, and technology expertise. This enabled us to assess Nufarm’s challenges and opportunities from multiple perspectives.
We initially found that the company’s 3PL provider was operating significantly below industry standards for operational efficiency and quality. Our team partnered with the client to orchestrate the transition to a new provider—providing experienced support from the proposal process through the transition in services.
By working closely with the company during the 3PL transition, we observed operations firsthand and used our supply chain and workforce optimization expertise to provide a comprehensive and prioritized set of recommended improvements. We were also able to help the company implement quick wins and process improvements during each phase of work, leading to faster benefits.
Outcomes
- Health check of the company’s ERP system and IT workforce to determine its readiness for implementing a warehouse management solution (WMS)
- Estimate of future productivity gains from a WMS implementation and developed a five-year business case
- Productivity assessment of the existing 3PL workforce in the distribution center
- Selection of a new 3PL vendor based on both quality and cost
- Program management for the 3PL vendor transition, with an expedited timeline to complete the transition before the company’s peak season
- Process documentation for supply chain processes
- Supply chain quality assessment of largest manufacturing facility, with five-year plan for operational improvements and strategic investments
Project Timeline
8
weeks
Conducted ERP health check and productivity assessment; prepared business case for new technology
12
weeks
Led selection process for new 3PL vendor
18
weeks
Helped execute the 3PL transition
10
Weeks
Conducted a manufacturing and material flow assessment
Real Results
Our aim is real impact. And that’s exactly what we were able to deliver. Nufarm expects $2 million in distribution savings over five years while also improving customer satisfaction. Introduction of a warehouse management system will increase inventory accuracy by 30%.
We left Nufarm in better hands by producing a five-year project plan for improving operations with further savings. The company expects to reduce overtime by 50% within the first six months and to move from two packaging shifts to one within a year—adding up to $1 million annually. In addition to hard-dollar benefits, these changes will improve employee fulfillment and satisfaction and minimize the need for “firefighting” in order to meet production plans.
Other long-term improvements will:
- Improve strategic hiring
- Mitigate the risks of turnover, retirement, and the loss of institutional knowledge in key functions
- Increase production volume, positioning Nufarm to grow market share
