LORRAINE CONSULTING INC.
supply chain Collaboration: improving service levels
A precision machining provider struggled to eliminate chronic past dues and improve performance on late deliveries to a key customer. Future business was at risk if a full recovery was not quickly achieved.
Company executives required a plan to improve On-Time Delivery (OTD) and rebuild the vital customer relationship
- Improve OTD from 60% to 100%
- Secure future customer orders
Developing a detailed strategy, we focused a cross-functional team to achieve success
- Assessed customer order process through observation and interviews
- Identified and corrected root causes such as order policy set-up, vendor past due, quality design issues
- Removed bottlenecks by increasing capacity & shop floor throughput
- Increased OTD to 98% within 6 months
- Eliminated expedited freight costs
- Redeemed supplier as a reliable source in customer’s eyes
- Strengthened supply chain partnership