The company was struggling to meet the delivery requirements of its biggest customer. At the time of implementation, shortages and stock-outs were running in excess of 30% of the managed items and WIP was excessive.
Actions:
Implemented a new process for managing the demand planning cycle to provide visibility on stock levels and changes in demand
Integrated customer forecasts and stocking requirements
Implemented lean principles for manufacturing to reduce batch sizes and lead times
Results:
Within 4 months the number of stock-outs and shortages were reduced by 30%
Managed SKU's and work in process were reduced by 50%
