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After rapid growth until the year of the boom in 2011, the rail industry is fighting against a sinking level of demand for orders. This has resulted in price wars on the market and massive price erosion – intensified by rising material costs in purchasing. Driven by excess capacity, Chinese suppliers are rushing to the market to strengthen their international presence. Also, on account of the train accident in 2011 in Wenzhou and further strenuous licensing procedures in Europe, the administrative challenges and requirements are intensifying.

candidus looks back at over 10 years of experience in the rail industry. We know the special requirements and needs of the industry and can therefore offer the best support possible as well as access qualified benchmarking information and techniques.

In order to strengthen their position on the market, companies have to develop stable order-processing procedures to react quickly to the market and meet the highest of quality requirements. In addition, strict and intelligent supply chain management is the basis for punctual deliveries at the lowest level of inventory, for short lead times, efficient processes and ideal production and distribution networks. Best-practice companies are also able to counter negative cost developments by using intelligent sourcing strategies.

 

With customized solutions that build upon our expertise, we stand at our customer’s side showing the way to becoming a best-practice company:

Select project references in the railroad sector
Supply chain project with an emphasis on delivery performance and logistics

General results:

  • Improvement of delivery reliability to 95 %
  • Improvement of inventory turnover to 7.5 %
  • Reduction of logistics costs to 6.5 %
Supply chain project with an emphasis on delivery performance and working capital
General results:

  • Improvement of delivery reliability to over 90 %
  • Drop in inventory by 20 %
  • Definition and implementation of a market oriented OTO / OTC process