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Reducing Lead Time & Re-engineering Procurement & Supply Systems

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Reducing Lead Time & Re-engineering Procurement & Supply Systems
Manufacturer of industrial and commercial printing equipment
Order Lead Time Reduction via Procurement & Supply Systems  
Issue Resolution
16 week customer order lead time.
  • Led transition from ‘push’ manufacturing operation to cellular ‘pull’ system, establishing:
  • Partnership supply agreements
  • Demand forecasting & KANBAN deliveries to point of use locations (releasing 12,000sq ft of warehouse space for production activity)
  • Design & implementation of ‘back-flushing’ transactional system
  • Factored ‘c’ class item purchasing
  • Proactive Vendor Management
  • This reduced customer order lead time to ten days, reduced transaction time by 75% reduced cost by £22K pa, and reduced operational costs by £40K pa. Stock availability improved to average of 95% and stock turns to over 27.
Poor on time delivery in separate division.
  • Re-engineered procurement & Supply Chain operation, selection and implementation of MRP system, supplier base rationalised from 150 to 60, and reorganisation of storage.
  • Resulted in on-time delivery improved to 95% on-time and 98% within 2 days of due date.
Cost Reduction  
Issue Resolution
Low margins and long lead times on sheet metal products.
  • Managed Value Engineering project to simplify over-engineered options, identify cost effective fastenings & assemblies and reduce number of unique panels, resulting in 12% materials cost savings, substantial reductions in assembly time and reduced product lead time