A medium-sized international consumer products company had outgrown its homegrown Supply Chain Management system and was experiencing severe supply and inventory issues.
Flow Consulting performed a comprehensive baseline analysis to develop an improvement strategy. Flow gathered an international team to analyze the current situation and to develop a future state plan to fully use the capability of an installed, but unused ERP system.
Inventory accuracy immediately improved from low 80 percent to more than 98 percent allowing more efficient production planning and raw material ordering. Over a three month period, the sales orders, inventory levels, and production plan were tied together allowing a shift to Make-To-Order operation for all main products. Inventory levels were reduced by 31 percent based on actual sales with an end goal of 40 percent. Lead times were improved by 25 percent. Model changeover obsolescence was reduced by more than 70 percent. As importantly, the cooperation of all parties in the supply chain improved remarkably as a single, visible and properly coordinated plan competently directed the operations.