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INDUSTRY FOCUS

Industrial Products

A Fast, Connected Supply Chain

Industrial products companies have an opportunity to profit from innovation strategies in the new world of advanced, digitized manufacturing. These efforts require fast, connected, and stable supply chains.

For these organizations, advancing supply chain performance and reducing cost are essential to a winning business strategy.

We’re helping industrial manufacturers and distributors create more visibility and integration within their supply chains with improved material flow, inventory and capacity, supplier/carrier performance, quality, and service.

   


  

passing-baton.jpg“A retailer focused on lowering transportation costs may order in large quantities. So the handoff between the retailer and supplier is at the transportation function, which will be teeming with waste because the supplier is building in batches to meet truckload quantities although such quantities have nothing to do with actual customer demand."

- Read more in the Lean Enterprise Institute article: "8 Tips for 'Passing the Baton' with Suppliers and Customers"

 


 

How We Help Industrial Products Companies: Case Studies

 

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CEO Supply Chain Diagnostic

The client’s supply chain was in exponential growth-mode as a result of a major acquisition and increased demand. With added complexity in merging two companies, leaders were unable to stay in touch with the day to day operations and lost visibility to efficiently executing the basics. Inconsistent and conflicting operational processes resulted in excessive overhead labor, inaccurate data streams, and inefficient manual "work-arounds."

LeanCor provided a purchasing model that segmented vendors into four categories to create vendor management processes and determine necessary levels of automation. They also provided an inventory model and SKU classification strategy to have the right products in the right places, as well as transportation optimization to improve third party costs, delivery, and internal fleet.

RESULTS WITH LEANCOR: 

  • $1M REDUCTION IN TRANSPORTATION COSTS
  • IMPROVED CUSTOMER ON-TIME DELIVERY

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Inbound Static Network Design
 
Suppliers weren’t shipping material on a
consistent basis and preferred not to be in
charge of finding carriers and making shipping
decisions. The customer – a manufacturer of
mining equipment, dump trucks, and tractor
equipment – needed logistics solutions that
would allow it to focus on creating product for
its customers and less time on logistics
planning. To add to these challenges, the material planning team didn’t know when material was arriving. With no visibility to inbound loads and unleveled volume, the dock couldn’t plan its day and suffered from insufficient manpower. The customer had large minimum order quantities on parts that caused five + weeks of material to be ordered, driving instability into the inbound volume. Supplier packaging information wasn’t readily available, and suppliers called in their own carriers which resulted in poor service levels and no accountability to damage or late arrivals.
 
LeanCor built a stable network that would give the suppliers and carriers static appointment times for pickup as well as delivery to the dock. Their goal was to reduce on-hand inventory. They also removed dynamic adjustments from the plan to prioritize stability over transportation costs.
 

RESULTS WITH LEANCOR:

  • 10% REDUCTION IN TRANSPORTATION COSTS
  • IMPROVED PICKUP AND DELIVERY PERFORMANCE
  • 20% INCREASE IN SUPPLIER SHIPPING PERFORMANCE

doosan-dl420-a-echelle-140.jpgWarehouse Design & Implementation Plan

A multi-national manufacturer of farm and construction equipment saught to consolidate all bulk inventory at multiple plants into a single regional distribution center (RDC). Directed by the the company’s top management team, the goal was to free up square footage for production assembly requirements and reduce costs associated with excess inventory and labor realignment. Without a standard template, systemic approach to data
collection, and documentation, the company’s ERP system was corrupt with inaccurate information, resulting in an inefficient PFEP process. This led to increased obsolescence cost, inventory inaccuracy and increased waste from misaligned material storage and flow. It also resulted in extra travel for machine operators, excessive labor, and increased cycle times.

LeanCor’s Lean Deployment team of consultants and engineers assessed the inbound material flow processes supporting manufacturing across multiple locations with the target of consolidating all bulk inventories into a single regional distribution center (RDC). From there, they, design the RDC layout determining the square footage requirement for multiple supermarkets at multiple plants. They established the material flow, storage
and conveyance at both the RDC and the supermarkets, and maximized productivity levels for the RDC and supermarkets. 

RESULTS WITH LEANCOR:

  • $188K TRANSPORTATION COST SAVINGS
  • $1.5M MATERIAL CONSOLIDATION SAVINGS

 

   

See Your Supply Chain as a Competitive Advantage

Since business decisions ultimately manifest in the supply chain, we help you see your supply chain as a feedback mechanism - an abundance of critical information needed to improve business performance, increase customer value, and eliminate waste. Solutions include:

• End-to-End Supply Chain Advancement ™
• Lean Transformations (Enterprise-Wide and Functional Areas)
• People Development: Training and Education
• Performance/Cost Assessments
• Inbound/Outbound Transportation Optimization

• Outsourced Transportation Management +™
• Inventory Flow and Right-Sizing
• Network Strategy and Design
• Distribution Center Design, Operations Improvement

 


 

 Typical Client Results

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To Speak With Our Industrial Products Market Leaders, Please Contact Us. 

 

Download a PDF with LeanCor's Industrial Products Solutions