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Consumer Goods/Commercial Grade Shelving Manufacturer
Background
- Multi-Site Manufacturer of and distributor of Commercial Grade Shelving and Cabinets
- Client had lost 75% of Supply Chain team including Director
- Client requested an Interim Director of Supply Chain
Key Business Issues
- Understaffed Supply Chain Team
- 80% of purchased goods from overseas
- No MRP utilization with current ERP system
- Overabundance of inventory due to former business model
- Minimal domestic sources
- Constrained components (wire and beams)
- Strained supplier relationships
- Customer in-stock levels declining
- Lack of Production Schedule
- Communication
- Upcoming Launch of new product in May/June 2022
- Tooling lead time for new product launch did not meet timing
- ERP implementation started on time in March 2022
Results
- Hired and trained Supply Chain Team
- Improved forecasting and planning driving inventory down and in stocks to manageable levels
- Participated in the vetting of ERP sources resulting in a final selection and on-time kick off
- Right sized inventory by location to build as many finished goods as possible through inventory transfers of material
- Developed current suppliers, built back damaged relationships
- Quantified daily forecast accuracy, overall transit times, and tracking milestone timely movement.
- Mitigated risk of on time container delivery in a very volatile supply chain environment.
- Implemented process to reconcile and dispute freight billing charges.
By the Numbers
18 weeks
Reduced Tooling lead time by 18-weeks from 28 to 10
$32M
$32M reduction in underperforming inventory
75%
75% improvement in inbound shipment accuracy
30 days
Reduced shipping lead-times by 30 days by resourcing freight forwarding Co