What if you could have greater forecast accuracy and reduce inventory by 30%?

With Proudfoot, you can.

   

THE CEO OF A TOP NORTH AMERICAN supplier of vitamin supplements wanted to develop a set of resources that would allow greater transparency and better decision making throughout the organization.

The main focus was to improve the organization’s forecasting and balancing supply to demand. Both of these factors were responsible for a recent trend of excess inventory in the company’s supply chain.

The CEO decided to enlist the help of Proudfoot.

  • A collaborative analysis determined clear opportunities to assure the supply chain was operating to its true potential.
  • The supply chain operated in silos, which contributed to poor planning and excess overtime.
  • Workarounds, frequent rework and poor scheduling were also causing significant delays.
  • Forecasting and production planning flaws generated a surplus of inventory, which had an adverse effect on the client’s working capital.

TRANSFORMATIONAL APPROACH

Working together with Proudfoot, the team:

1

Designed and installed a daily schedule control to define assignments and set performance standards for each shift.

2

Created daily and weekly operating reports to give management greater visibility over the entire operation.

3

Refined a formal S&OP process to improve forecasting capabilities and supply planning, which in turn reduced inventory and provided greater access to working capital.

4

Implemented operational systems and tools featuring robust planning, scheduling, short interval control, and reporting capabilities across the various departments to improve productivity.

5

Assigned employees strategically to areas of the company that needed additional support.

6

Trained supervisors and employees through live one-on-one coaching and support to align behaviors with the new performance expectations.

“Working side-by-side with our team, Proudfoot implemented a series of tools and resources that improved our visibility and controls making the supply chain functions more manageable.”

Client CEO

REMARKABLE RESULTS

  • 20% increase in productivity
  • 30% reduction in inventory
  • Improvements in processes and systems increased productivity in manufacturing and distribution.
  • Increased productivity decreased cycle times and reduced the need for overtime.
  • Established a performance-based culture and a committed workforce operating efficiently with lower costs and simple, well-measured processes.

New S&OP policies resulted in:

  • greater forecast accuracy
  • a higher quality of product mix
  • reduction in inventory
  • ability to effectively balance supply with demand