LORRAINE CONSULTING INC.

supply chain Collaboration: improving service levels

Overview

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.

The Objective

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

Approach

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

Results

• 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