CASE STUDY – IBP Group

OVERVIEW

IBP Group’s $150M UK division (HVAC Manufacturing and Distribution) was spiralling into operational collapse. A failed ERP rollout froze $25M in allocable inventory, fulfilment dropped below 20% line-fill rate, and major trade clients were preparing to walk.

Trigger for Intervention: Fulfilment collapsed, exports froze, and $25M of stock was stuck. A flawed ERP rollout had sent the entire UK division’s performance sideways.

THE CHALLENGE

IBP’s network was paralysed by system chaos, broken flows, and rising customer risk.

• ERP meltdown — 2,500+ daily “3448 errors”; inventory was visible but unpickable with no path to resolution.
• Putaway paralysis — 120 tonnes of stock stuck; export orders were partially picked but sat unshipped for many weeks.
• Customer flight risk — Top clients (Wickes, BSS, Travis Perkins) prepared to exit through fundamental service failures.
• Inventory chaos — $25M in misaligned stock; PI abandoned; sub-carton picking rampant.
• No operating rhythm — 24/7 model drained margin; no accountability or process ownership

THE APPROACH

Gary Newbury was appointed as Interim COO to lead a full recovery across three depots (Tipton, Dunstable, and Glasgow) — restoring execution, confidence, and commercial control.

• Exposed systemic blockers — Misconfigured ERP codes, broken location logic, and putaway rules were halting execution.
• Reset accountability — Cut 6 JDE support consultants; removed 10 clerical roles by redesigning workflows. Demanded top JDE engineer came and explained “3448 errors”.
• Split operational flows — Created distinct teams for putaway, pick, and pack — and split bulk vs fine pick.
• Reallocated stock — Prioritised orders across multiple depots, bypassing the broken Tipton hub.
• Rebuilt capacity logic — Cleansed 44,000 order line backlog; built 800-line/day warehouse throughput model to ensure pick commitments matched daily sales promises.

THE SOLUTION

Execution was rebuilt from the ground up — systems, stock, and shift logic were all reset.

• Rebuilt warehouse logic — Introduced pick-to-zero, removed sub-carton lines, and completed the first full wall-to-wall stock take in 12 years — in just one day.
• Reengineered ERP logic — Resolved 3448 errors; built daily stranded stock queries; reset Advanced Warehousing.
• Overhauled shift model — Transitioned to 8/5 operation; launched dual-phase picking and task interleaving to drive productivity and availability.
• Cleared export backlog — Moved 800 tonnes; restored Deep Sea flow; resumed “in full” international dispatches.
• Re-coded fulfilment — Shifted KPI to QUOTIF; service rose from 19% to 99% in under six months.