Material Logistics Design For Leading Edge Supply Chain Strategy:

Industry: Aerospace/Defense (large corporation)

Opportunity: Show how to save money and reduce inventory by redesigning the inbound materials supply process.

Mission: Perform a business diagnostic of Inbound Material/Supplier Logistics to discover opportunities for improved costs and performance through the application of leading best practices and innovative ISC design.

Results: Benchmarking and simulation predicted these key results:

• Reduce manufacturing inventory 48%
• Reduce manufacturing supply chain process costs by 59%
• Cut cycle time by 58%
• Improve material availability to manufacturing by 48%

Actions: Led a cross-functional team in the business diagnostic of current state supplier logistics, manufacturing, product planning, material planning, procurement, warehousing, inventory control/management, quality assurance and business systems. Applied industry benchmarking intelligence, best practices and innovation to design and develop a demand driven supply network (DDSN). Positioned supplier logistics within a leading edge supply chain strategy, which integrated supplier logistics with:

• Strategic sourcing/outsourcing
• Lean manufacturing
• Supplier relationship management (SRM)
• Supplier - vendor managed inventory (VMI)
• Supplier quality assurance
• Collaborative planning and forecasting
• Flow-thru logistics
• Pull replenishment
• Return logistics

Implementation and business transition planning included the mapping and selection of Information Technology required to support the future business process. Key performance indicators were developed for Tier I and Tier II business processes.

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