Case

Sporveien Supply Chain Strategy

Knowit has worked shoulder-to-shoulder with Sporveien in establishing a Supply Chain Strategy. The strategy will support a significant increase in the number of passenger journeys on the trams and subways over the next years.

The Challenge

The number of passenger journeys by tram is expected to increase by up to 100% towards 2030. To meet the demand for future urban travel, Sporveien will commission 87 new modern trams to replace the existing tram fleet. The new fleet will contribute to more capacity, lower maintenance costs and more satisfied customers. This ambition also put greater demands on the Procurement & Logistics department, which is responsible, among other things, for delivering the right amount of parts, at the right time, and at the right place for both the tram and the subway.

The Solution

Together with Sporveien, Knowit conducted a comprehensive assessment of the current organization and processes in Procurement & Logistics including dependencies to other departments. Furthermore, best practices from other industries were presented and relevant experiences were shared by other European operators who already have set similar trams that Sporveien will receive, into operation. Based on this assessment, the project set a 3-5-year ambition for the development of the supply chain in Sporveien. The project also worked out a comprehensive service level agreement between Procurement & Logistics and the tram workshop, which will make it possible to ensure even better accuracy in deliveries and collaboration in the future. Knowit also developed various strategic alternatives for how warehousing can be handled in order to increase turnover rates and reduce capital tied up.

The Result

Sporveien has a defined roadmap for improvements and can begin the journey towards a more flexible and cost-effective supply chain. Procurement & Logistics and the tram workshop have also established which handovers have the highest priority, identified important performance indicators, and agreed on the necessary commitments from both parties to achieve their targets. This lays the foundation for further improvement efforts and will be a key contributor to Sporveien reaching its goals towards 2030.

The team quickly got an overview of a complex organization with many different disciplines and produced very tangible deliverables, including a clear action plan.

Aleksandar Milovic, Director, Logistics & Operational Procurement in Sporveien.

Kristian Kjernsmo

Head of Next Generation Operating Model

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