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Putting a Stop to Poor Inventory and Supply Chain Management
Background:
A European-based manufacturer operating two automotive foundry facilities was facing persistent operational and financial headwinds. While technically stable, the business was challenged by weak profitability, inefficient inventory practices, and limited commercial responsiveness. Crossover Solutions was engaged to conduct a comprehensive assessment and lead targeted improvements across operations, planning, and supply chain functions.Critical Issues:
- Excessive finished goods (FG) inventory and stagnant inventory turns
- Poor cash flow due to bloated stock and warehousing inefficiencies
- Manual and inconsistent production scheduling
- Disruptive and costly year-end physical inventory processes
- Long proposal response times and a low commercial win rate
- Fragmented KPIs and a lack of performance visibility across departments
Approach:
Crossover Solutions deployed a hands-on, cross-functional team to perform a full Value Stream Mapping (VSM) assessment and implement structured operational improvements.Key Actions:
- On-site walkthroughs and diagnostic assessments across casting, machining, and logistics
- Identification and execution of 19 targeted improvement projects
- Development and deployment of tools such as:
- Economic Production Quantity (EPQ) Scheduler
- FG Warehouse Analysis Model
- Scrap Tracking Tool
- Proposal Response Standardization Matrix
- KPI Dashboards for Operations, Sales, Logistics, and Finance
- Ongoing collaboration with client leadership through weekly progress reporting and bi-weekly steering reviews
Results:
We guided the client through a performance turnaround focused on execution, accountability, and visibility. Tangible outcomes included:- Optimized production planning and scheduling with furnace-level load balancing
- FG inventory controls established through monthly stock reviews and stocking models
- Proposal cycle time reduced by 90%, improving client responsiveness
- Preventative maintenance rigor introduced with MTBF/MTTR and downtime pareto analysis
- KPI visibility standardized across departments, reinforcing data-driven decisions
- Automation opportunities identified in melt handling and material flow, laying the foundation for long-term cost reduction
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By the Numbers
90%
reduction in proposal turnaround time
10%
increase in commercial win rate
19
operational initiatives implemented
5
departments with KPI dashboards deployed