Supply Chain Process Improvement, Inc.

We Find and Fix  Dollar Leaks

Customer Success

Performance Improvements:

The SCPI / Gensym team has been involved with a significant number of very successful Supply Chain transformations for companies in diverse industry segments (see below).  This cross industry exposure and experience provides an excellent background from which to find and fix your Dollar Leaks!  More importantly is that these efforts delivered concrete results.  The table below gives an overview of our larger impact projects by industry.  Clearly we recognize that these projects couldnt have provided such significant gains without the commitment of our customer partner.

The following project examples demonstrate the advantage of linking strategic supply chain objectives and initiatives, and working with the SCPI team!

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.

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