A consumer products manufacturer facing rising costs, particularly in promotional sales, sought to improve customer service, reduce inventory and develop and implement a process to manage its suppliers.

CornerStone Approach

CornerStone worked with the client’s leadership to define Driver Goals and implement a system for aligning the organisation’s activities with its high level targets. Teams mapped Promotional, Sales, Customer Service and other supply chain workflows to identify opportunities to improve key indicators and to shift towards a ‘make to order’ fulfilment process. Targeted improvement projects enabled the teams to achieve cost, lead time and inventory reductions. A structured operating system served to keep the client and its suppliers on track to maintain and grow gains.

Actions Taken

  • Instituted a goal roll-out and translation process.
  • Developed and implemented a new ‘make to order’ process for Promotional Sales.
  • Designed and implemented a managing operating system for Promotional Sales.
  • Implemented a reward and recognition process.
  • Developed a barrier identification and removal process.
  • Co-ordinated changes in the Promotional Sales process between the client and its suppliers.

Driver Goals

  • Improve Customer Service line item fill rates to 97%.
  • Reduce obsolete inventory to near zero.
  • Reduce order lead time from than 12 weeks to 9 weeks or less.
  • Reduce inventory turn time from than 35 days to 15 days.
  • Transition from a ‘make to forecast’ to a ‘make to order’ system.

Results

  • Line item fill rate of 90%.
  • Reduced obsolete inventory to 3%.
  • Reduced order lead time to 4 weeks for standard products 8 weeks for non-standard products.
  • Reduced inventory turn time to 15 days.