Type of Business: Manufacturer of truck accessories
Revenue: $150 million
The Challenge: Inventory costs were too high while at the same time on-time delivery to customer was poor due to material shortages.
The Goal: Reduce inventory and increase on-time performance to 98%.
The Process:
- Implemented an electronic replenishment pull system for finished goods
- Initiated sales force planning fences for planning and scheduling
- Developed a Sales and Operations Planning (S&OP) process for managing forecasts
Results:
- Achieved 98% on-time delivery
- Reduced total inventory by 38%
Duration: Achieved results in four months
Consultant's Role:
- Functioned as on-site process improvement expert
- Determined what needed to be done and implemented the changes
- Transferred knowledge to internal experts to enable future process improvements
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