World Class Supply Chain Design For New Product Line:
Industry: Business Equipment (large corporation)
Problem/Opportunity: Competitive costs pressures dictate designing new products supply chain to meet/beat the best global performers. Use supply chain management as a competitive weapon.
Mission: Design a world-class product delivery network with state of the art supply chain practices to yield benchmark performance for a new family of products.
Results: Benchmarking and simulation predicted these key results:
- Reduce total supply chain inventory by 35%
- Reduce manufacturing costs by 30%
- Reduce transportation/logistics costs by 50%
Actions: Led a cross-functional team in the design and development of a customer driven supply process excelling in People Management, Quality Management, Environmental Management, Productivity Management and Supply Chain Management. Highlights are:
- Focus factory designed to respond to customer requirements/orders:
- Flexible facilities and workforce
- Flow process for material delivery and assembly
- Integrated vertical operations
- Systems configured-to-order and modules built-to-demand
- Direct ship from factory to customer/integrated equipment delivery
- Direct contact with customers for feedback on satisfying customer requirements
- Integrated returns and recycle of product
- Supplier strategy for material supply:
- Limited/local supply base
- All certified suppliers
- All requirements contracts
- Flexible, short lead time, lean operations
- Daily Kanbans (EDI)
- Point of use delivery in returnable totes
- Supplier managed material until point of use
- Single freight supplier for all inbound and outbound logistics
- Direct ship of spare parts to field locations
- Return and recycle own materials (spares)
- Work with Engineering to developed configurable product system design:
- Postponement, configure-to-order
- Common base product
- Mass customization
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