Supply Chain and Logistics Performance Improvement

• An immediate 25% increase in OTIF to the manufacturing lines
• By the end of the project, OTIF was consistently above 96.5% with ongoing supplier-based improvement plans in place
• Order overdue eliminated in month, and 35% reduction by exact due date
• Physical and system receipt to bin achieving 98%+ daily & weekly – an improvement of 30%
• Fully updated operational standards and defined skills training programme
• Validated perpetual inventory process & diary-based on a 3-monthly cycle count of all inventory
• Improved grip and control on day-to-day and week-to-week performance through key measures and a defined management review cadence
• An overall ROI on the investment of over 10:1

Develop Consulting were asked to specifically assist in improving the process integrity of all on-site logistics activities, from goods receipt to line side delivery, support the effective day-to-day management of storage space, reduce late deliveries, and develop & coach the on-site team to sustain improvements on a range of business KPI’s.

Develop Consulting fully implemented a centralised PMO war room, with a defined review cadence and agreed improvement measures across all of the improvement projects.

Within the supply chain process, key commodities were reviewed and supply plans defined (including dual sourcing), with day-to-day schedule adherence visually measured, and driving an hour-by-hour performance discipline, with rapid escalation of any performance issues.

With an operational focus on goods receipt, the receiving of product physically was matched to system-based booking in, to ensure a receipt-to-bin timeframe of less than 2 hours.  Perpetual Inventory processes (cycle counting) were redefined, and a daily count calendar implemented to drive increased bin & stock integrity.

Throughout the activities, KPIs were measured and reviewed daily and weekly to ensure on plan, with rapid root cause problem solving where performance gaps were identified.

The operational structure was then re-aligned to reflect the process changes & improvements made, with a focus on driving ownership of the operation to the correct empowered level, alongside an on-going capability and skills development plan.