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What if you could improve forecasting, reduce lost sales and achieve record service levels?

With Proudfoot, you can.

   

THE CEO OF A DISTRIBUTOR for a major home improvement chain wanted to achieve profitable growth. He felt the best way to do this was to develop a competitive advantage through efficient supply chain operations.

Installing a new operational structure to govern demand planning, procurement and order fulfillment was a top priority.

The CEO wanted to implement an operational structure to control demand planning, procurement and order fulfillment functions, but he knew it would be a challenge internally.

Complicating matters:

  • One of the company’s key client relationships was in jeopardy, and required immediate action to retain the longstanding customer.
  • Attrition across the senior management team put a strain on remaining members. and impacted continuity.
  • The CEO decided the best way to accelerate the improvement initiatives was to partner with Proudfoot.

TRANSFORMATIONAL APPROACH

Working together with Proudfoot, the team:

1

Conducted cost/benefit analysis to determine which distribution centers circulated the highest volume of products – the basis for the client’s supply chain network design.

2

Analyzed outgoing shipments to identify opportunities for order consolidation and route optimization. Elements of sales and operations planning (S&OP) allowed planners to accurately forecast demand to meet upcoming product launch and replenishment requirements.

3

Developed root cause and corrective action reports to minimize supplier-related problems.

4

Equipped the newly designed network to satisfy business requirements at the lowest operating cost.

5

Installed new processes for better order management, behaviors and controls to expedite the fulfillment process.

6

Focused on S&OP to increase forecast accuracy and the rate of product circulation from warehouse to consumer.

REMARKABLE RESULTS

  • $33.3M reduction in inventory costs
  • $95.6M in identified benefits

Greater emphasis on sales and operations planning resulted in:

  • increased forecast accuracy
  • reduced amount of lost sales
  • improved customer service
  • higher margins
  • Better inventory management and increased product circulation across the supply chain gave access to valuable working capital.
  • The alignment of efficient order management processes with the right behaviors provided greater visibility over the delivery process and strengthened customer relations.
  • The redesign and optimization of the logistics function played a significant role in minimizing operating costs.
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