Supply Chain Performance Improvement Examples |
Supply Chain Objectives |
Project Strategic Initiatives |
Benefit |
1.
Expand manufacturing operation (faced with rising demand,
the customer needed to expand but
had limited room for expansion)
2.
Increase plant productivity |
Provided Vision for integrated plant and warehouse design that
took advantage of a multi-story building design. Major
productivity savings were predicated by using automated warehouse
and product delivery systems.
Provided the Tools to implement the vision in the form of Gensym
G2 applications for Material Management, End of Aisle and Cell
Control. |
The facility
was commissioned in 1998 and is still recognized as the
pharmaceutical industry GMP standard.
The Material
Management, End of Aisle and Cell Control applications, designed,
implemented and validated by SCPI staff, have run for 7 years with
only a single processing error achieving better than 99.999%
uptime! |
1.
Fix problems with customer on-time-delivery
2.
Complete finished goods shift from make-to-stock to
assemble-to-order
3.
Decrease transportation costs
|
Implemented a flexible Order Fulfillment Planning Process
improvement and tools to provide a capable to promise ship date
for each customer order.
The process simultaneously considers the cost and time components
of customer and inter-company transportation, distribution and
assembly alternatives as well as capacity, and critical material
availability for all line items on an order. |
Within one year of operation the client was
able to improve customer service by over 50% and reduce supply
chain logistics costs by more than $30 million annually. In
addition, while competitors were losing share, this best practice
has allowed them to increase market share by 16% in the year
following implementation. |
1.
Reduce cycle time of Sales & Operations Planning (S&OP)
process from weeks to days
2.
Improve ability of S&OP process to respond to out-of-cycle
increases in demand without excess inventory |
Implemented a Responsive Inventory Planning process that included
a Tactical Planning optimization for ‘A’ items, and a plant level
planning and execution tool to simultaneously shorten the S&OP
process cycle time and allow for as needed and what if process
execution. |
Business is now able to respond to quick swings in demand without
additional assets. The client has successfully planned and executed
with several
25% upswings in demand with the same inventory. |
1.
Reduce lengthy order fulfillment time
2.
Improve on-time delivery performance
3.
Reduce inventory (increase asset turns) |
Modeled To-Be states for an entire supply chain, which provided a basis
for evaluating various fulfillment scenarios. As-Is fulfillment process
relied on make-to-stock processes with short life-cycle products.
Validated performance against critical SCOR performance metrics for
various stocking and postponement scenarios. |
Analysis confirmed process and system changes to decrease average
fulfillment time from 56 days to just four. On-time performance
increase from 90% to 97% and average inventory levels planned to
drop from 770,000 pieces to 440,000 pieces. This customer
reports savings of $10M+ annually from this and subsequent
projects. |
1.
Decrease error rate for operational data collection
2.
Decrease WIP inventory
3.
Increase on time performance |
Integral data collection and management system supported by an
end-to-end planning process providing visibility, control and an
improved planning process focused on internal performance and
on-time delivery. |
Improved on-time delivery in the plastics area from 38% to 70% to
95% -- all in the course of one year
Realizing on-going intermediate WIP inventory reductions of $20
million annually |
1.
Provide analysis capability for cost and service
issues in a complex logistics network |
Over a 30 day period constructed a model of the entire supply chain - from
the retail level to the troops in the field. The model traces
transactions through the supply chain process to measure inventory
levels, fulfillment times, resource requirements, and costs.
|
The model's initial use identified a number of immediate
opportunities in the logistics system. Longer term, the most
significant benefit is at the strategic level. They now use this
model to analyze the economic impact of changes and proposed
alternatives to their logistics. For the first time, senior
officers have an end-to-end view of the entire supply process. |