Top 5 Project Topics :
Project History:
Selected Reference Projects:
| Project | Duration | Bottom Line Impact | |
|---|---|---|---|
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Inventory reduction for components manufacturer
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10 weeks |
15 - 20% |
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Customer backlog reduction for US components
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12 weeks |
15 - 25% |
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Freight reduction for North American components
|
8 weeks |
20 - 30% |
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Industry: |
Leading Construction Components Manufacturer
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Company Size: |
2,000+ |
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Project Location: |
United States |
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Problem Statement: |
After a period of substantial growth, our client received severe customer complaints due to declining OTIF (on-time in full) performance and an increasing finished goods backlog. 2 of their top 5 key accounts threatened to end the relationship, if the finished goods backlog would not be significantly reduced within a 2-4 months period.
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Meeting: |
Understand scale and impact of finished goods backlog
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Deep Dive: |
Root cause analysis revealed main drivers for backlog: no alignment between sales, planning, production and warehouse
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Hypothesis: |
Develop and implement SIOP (Sales, Inventory and Operations Planning) as a planning methodology and SIOP Loops as alignment routines among stakeholders
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Project: |
1 consultant 8 weeks |
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Deliverables: |
SIOP and SIOP Loops implemented Backlog reduced by 35% (end of project), by 75% (4 months after project start) |
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Bottom Line Impact: |
Both key accounts retained due to substantially improved OTIF performance Order to cash cycle reduced Inventory and working capital reduced |
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Root Cause Analysis
Fees vs. Bottom Line Impact
