Rexel - Process redesign

(11.6.2010) Rexel, the world's largest distributor of electrical equipment and wiring material, chose Aspiro from among a range of competing consultancy companies to lead the process re-engineering project for its Czech subsidiary.

Rexel CZ belongs to the international Rexel group which has more than 2,470 stores in 34 countries and more than 33,000 employees worldwide. Rexel CZ has more than 200 employees; after the merger with Elvo a.s. in 2005 it has become the number one in the lighting and wiring equipment market.

Rexel CZ had completed a merger with Elvo and Hagemeyer CZ, local companies. Despite progress in centralization, differences in processes remained as a legacy of different operating models of acquired companies. Lack of standardized communication and processes was damaging customer satisfaction and hindering Rexel’s leading position in the market. Rexel decided to launch a re-engineering project to significantly streamline and speed up Order-to-Cash and Procure-to-Pay processes across the organization.

The project scope included the following:

• Assessment of the existing business process map and identification of key process areas with major potential and impact on business operations
• Detailed process design of target state of selected priority processes (documented in ARIS)
• List of key measures and reports required to operate consistently and efficiently across the newly created processes and organization
• Specification of required IT changes to support the new processes
• Detailed implementation plan to allow an immediate start of deployment phase 

Aspiro, jointly with the core Rexel team, successfully completed initial analysis and process re-design in less than 2 months. The newly designed processes address key improvement areas and upon deployment shall:

• reduce overall order fulfillment time (decrease average duration of receiving of goods, eliminate process bottlenecks)
• increase customer satisfaction (committed delivery date, pro-active exception management, prioritized ordering)
• enhance product availability (product/category management, consolidation and strategic supplier management)
• improve financial management (automated centralized invoicing, customer segment driven pricing)

Despite the short duration, Aspiro / Rexel team quickly established an effective working environment involving Rexel’s people across different organizations and locations.

This information has been published with the consent of Rexel Eastern Europe and Rexel Czech Republic, by Armin Krotky (CIO Eastern Europe), Radomil Blazek (CEO Czech Republic) and Peter Dvornak (CFO Czech Republic).