Supply Chain Improvement

Scope of work

Our client’s supplier was being late with their deliveries, and consequently slowing our client’s deliveries to their clients. This was impacting our client’s cash-flow and reputation as a reliable supplier.

Our mission was to work with the supplier and help them catch-up to reach a monthly minimum of 98% OTD.

Activities

Work with the Supply Chain Teams of both Client and Supplier.
Clearly define the problem(s) impacting our client.
Identify the root cause(s) of the problems.
Define contingency measures.
Define definite corrective actions.
Define Cost of Poor Quality (COPQ) to our client.
Define and Establish KPIs / Performance Metrics
Define and Launch Corrective Action Plan to support Burn-Down Plan, which included tagging parts in WIP, expediting WIP, personal follow-up and hand-carrying to client’s site.
Monitor Closely to ensure supplier is heading in the right direction and that customer is satisfied.
Reporting to client’s leadership team.

Results

The supplier’s order entry process was failing, preventing an accurate match between the client’s POs and what they had in their MRP.
Burned-Down POs in backlog, and defined and implemented control plan to prevent issue from reoccurring.
Positive / Favorable trend was observed after one week of having implemented corrective actions.
Supplier completely caught-up with past dues on week 13.
Client’s cash-flow and reputation recovered shortly after to a healthy metric.

Management Consultants & Operations Partners

Case Studies

Supply Chain Improvement

Scope of work

Activities

Results