Manufacturing and Distribution Optimization
Manufacturing
Distribution
Optimization
A top powersports manufacturer engaged SCPI to analyze opportunities for service improvement and waste reduction against strong demand growth in highly competitive market.
The end results: engaged regional distribution nodes to efficiently balance of inbound & outbound transportation and improve time to market. The solution also transitioned the delivery network from disposable packaging to more sustainable returnable packaging.
Challenge
- Addressed un-competitive customer service levels, long lead times, high distribution costs
- Client had excessive and slow-moving inventory with weak revenue growth
Approach
- Deployed, Trained, and Optimized Disciplined S&OP Monthly Cadence; including Supply & Demand Reviews
- Communicated cross-functional roles and responsibilities across Sales, Marketing, Finance, and Operations
- Established monthly PDCA to address systemic errors in planning and fully aligned Supply, Demand, Revenue, and Sales Plans
- Process audit and design, planning metrics development, Serve in process roles
Results
- Improved success of new product introductions, promotions, and customer projects by under-pinned revenue plans and inventory budget.
- Optimized size and mix of inventory to ensure the Right Products, in the Right Place, at the Right Time
- Supply or Demand gaps identified with action plans and countermeasures to close these gaps over 3-month, 6-month, and 12-month planning horizons. Absorbed demand variation with optimal inventory; not production.