Challenge
Baukrane, a leading CEE construction material company growing 20% YoY, faced scalability issues in its supply chain:
- Inconsistent processes across 4 branches in sourcing, procurement, and logistics
- Limited knowledge transfer and benchmarking opportunities
- Risk to cost structure and operational efficiency
Actions
To tackle these challenges, the company focused on standardization, automation, and efficiency:
- Customer Segmentation – Classified customers by value, volume, frequency, and service requirements for targeted deliveries
- Delivery Methods Definition – Developed SLAs and activity-based cost calculations per customer and product type
- Warehousing Process Revamp – Optimized layouts, implemented a new warehouse management system, and updated quality control procedures
- Planning Process Redefinition – Introduced Sales & Operations Planning (S&OP) linking commercial plans with procurement and logistics
Results
- 14% reduction in customer claims due to better SLA alignment and understanding of customer needs
- 8% lower processing costs per order
- Improved logistics talent transfer and knowledge sharing between branches
- 6% decrease in transportation costs and enhanced visibility on cargo partner performance
- New WMS secured process stability
- IT systems insights led to decision to upgrade legacy ERP
- Predictable supply chain with stabilized operational costs
Summary
Baukrane achieved significant improvements through:
- Customer segmentation and tailored delivery strategies
- Optimized warehousing and processes
- Technology adoption including new WMS and ERP upgrade
- Cost reductions and operational efficiency gains
These initiatives ensured a scalable, predictable, and efficient supply chain supporting future growth.