Tier One Auto Supplier
SITUATION
Tier one auto supplier needed help driving demand visibility and supply chain planning, operational performance improvement and reliability, and sourcing performance.
DRIVER GOAL
- Reduce plant inventories by 5%.
- Reduce Distribution Center labor costs by 5% as a percent of sales.
RESULT
- Reduced plant inventories by 9%.
- Reduced Distribution Center labor cost by 5% as a percent of sales.
Case Study
Optimize Supply Chain & Reduce Inventory
Issue
A tier one supplier in the auto industry, with eleven manufacturing facilities, engaged The Highland Group to help drive demand visibility and supply chain planning, operational performance improvement and reliability, and sourcing performance and reliability.
Highland Approach
The Highland Group performed an analysis of the operation to determine and target the causes of missed and late shipments to customers, which had resulted in costly inventory levels and distribution and a complete lack of quality control standards. The co-team utilized a variety of tailored performance improvement techniques to optimize the operation and create and ensure quality standards, and then implemented structured management systems to monitor/control the supply chain, production and order delivery.
Actions Taken
- Developed and implemented a supply chain System For Managing for monitoring orders and inventories.
- Implemented revised safety stock rules, narrowed shipping windows/transit times and increased order frequencies.
- Developed and implemented eleven, plant-specific Systems For Managing orders and production.
- Developed and initiated “Competitive Supplier” programs for lead time reduction.
- Reengineered Distribution Center processes and reestablished quality control practices.
- Developed and implemented a demand-driven Distribution Center staffing model.
