INVENTORY MANAGEMENT

Problem: Poor customer service (30% fill rate.) High Inventory (6 months supply at 17 locations.)
Solution: Move safety stock to central factory warehouse location.
Results: Customer service improved to 95%. Inventory reduced to 1.5 months supply.
PURCHASING EFFECTIVENESS

Problem: Company using nonstandard material that cost $2 million per year.
Solution: Located and implemented a standard specification material to serve the same purpose without reducing quality.
Results: Reduced cost of material by 15% which increased profits by $300,000.
OPERATIONS ANALYSIS

Problem: Long lead-time (2-3 months), low market share (15%).
Solution: Improved internal materials and information flow and supplier interface processes.
Results: Lead-time reduced to 1-2 weeks, market share increased to 80%.
TRANSPORTATION

Problem: Changing customer requirements resulted in company with $8 million freight expense, poor customer service and no resources to manage the process.
Solution: Designed freight management system, including EDI, carrier auto-pay and an “on-site” carrier representative to manage the process.
Results: Company providing high level of customer service, while effectively managing the process and saving 20% on freight costs ($1.5 million per year).

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