Material Shortages

Recognizing the need to change purchasing leadership.

Case Studies


Business Issue

An automation company was facing constant material shortages and increasing costs of purchased materials.

Approach Used

  1. An intensive 2-day Procurement Snapshot was performed, which included interviews, personnel assessment, cost-data analysis and process reviews

  2. Several key problem areas were identified

  3. Engineering and Purchasing employees were trained to keep preliminary product development costs to a minimum

Results

  1. Recognition of need to change purchasing leadership and with the support of Flow Consulting, locate and interview a replacement purchasing leader

  2. A 20 percent reduction in overall material costs for subsequent automation products

  3. A 50 percent reduction in materials shortages within three weeks

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Improved Packaging Yields