Food Logistics 100
 
 
 
Success Stories

World Class Supply Chain Design For New Product Line:

Industry: Business Equipment (large corporation)

Problem/Opportunity: Competitive costs pressures dictate designing new products supply chain to meet/beat the best global performers. Use supply chain management as a competitive weapon.

Mission: Design a world-class product delivery network with state of the art supply chain practices to yield benchmark performance for a new family of products.

Results: Benchmarking and simulation predicted these key results:

  • Reduce total supply chain inventory by 35%
  • Reduce manufacturing costs by 30%
  • Reduce transportation/logistics costs by 50%

Actions: Led a cross-functional team in the design and development of a customer driven supply process excelling in People Management, Quality Management, Environmental Management, Productivity Management and Supply Chain Management. Highlights are:

  • Focus factory designed to respond to customer requirements/orders:
    • Flexible facilities and workforce
    • Flow process for material delivery and assembly
    • Integrated vertical operations
    • Systems configured-to-order and modules built-to-demand
    • Direct ship from factory to customer/integrated equipment delivery
    • Direct contact with customers for feedback on satisfying customer requirements
    • Integrated returns and recycle of product
  • Supplier strategy for material supply:
    • Limited/local supply base
    • All certified suppliers
    • All requirements contracts
    • Flexible, short lead time, lean operations
    • Daily Kanbans (EDI)
    • Point of use delivery in returnable totes
    • Supplier managed material until point of use
    • Single freight supplier for all inbound and outbound logistics
    • Direct ship of spare parts to field locations
    • Return and recycle own materials (spares)
  • Work with Engineering to developed configurable product system design:
    • Postponement, configure-to-order
    • Common base product
    • Mass customization

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