Lorraine Consulting Inc.

Turning around inefficient inventory control

Overview

A shift in manufacturing locations disrupted a defense supplier’s stockroom footprint and record keeping.  This led to misplaced product, late customer deliveries and missed sales.

The relocation to the larger site was a decision by company executives to support sustained sales growth and an increase in resources.  However, shortly after the completed move, stockroom personnel struggled to execute a seamless transition.  Inventory accuracy dropped and inabilities to satisfy customer demand soon plagued the business.

The Objective

Leadership required quick solutions to address inaccurate inventory and improve customer service

• Rapidly implement new stockroom footprint with zero production downtime
• Immediately improve inventory accuracy
• Update inventory management processes/procedures

Opportunities

With a new space to manage inventory, the company could strive for more control

• Automated Cycle Counting
• 5S organization
• Ergonomically optimize work space

Approach

Partnering with the Materials Management team, we quickly outlined action plans and tracked progress.  Our strategy included:

• Observing current state & involving all employees in improvement ideas
• Assessing ERP capabilities & functions for process automation
• Providing training and detailing standard work

Results

• Promoted employee safety & ergonomics
• Increased inventory accuracy to 98%
• Reduction in part shortages and kitting lead-time by 30%
• Improved customer satisfaction