Case Study: End-to-End Supply Chain Transformation Accelerates Profitable Growth
The Problem
A leading B2B electronics company faced a decline in market share due to inefficiencies in supply chain functions. Challenges with lead times, costs, and on-time delivery impacted their ability to compete, necessitating a comprehensive supply chain transformation to regain market share and improve profitability.
The Approach
A project lead was appointed to conduct an end-to-end supply chain assessment and develop a roadmap for improvement.
Key steps included:
- Assembling a global cross-functional team.
- Identifying improvement strategies using data-driven methodologies.
- Gaining organizational buy-in for recommended changes.
- Leading the successful implementation of strategies across supply chain functions.
The assessment established a detailed understanding of the current state and identified improvement opportunities using proven methodologies and tools.
Key Assessment Areas and Deliverable
|
Assessment Area |
Tools/Methodologies |
Deliverables |
|
Voice of Customer |
Survey with internal customers |
Prioritization of improvement areas (e.g., lead time, on-time delivery). |
|
Planning Process |
Process mapping and benchmarking |
Identification of weaknesses and gaps in existing planning processes. |
|
Supply Base |
Supply base segmentation |
Opportunities for optimization, increasing leverage with strategic vendors. |
|
Strategy Alignment |
Stakeholder interviews |
Alignment of strategies, goals, and KPIs across the organization. |
The resulting strategy focused on supply chain responsiveness, performance consistency, and cost competitiveness.
Strategic Priorities Implemented
- Sales and Operations Planning (S&OP): Synchronized supply chain and sales functions across all business units.
- Lean Process Improvements: Conducted factory value stream mapping to standardize processes and drive continuous improvement.
- Supply Base Optimization: Shifted spend to better-performing suppliers to improve overall reliability and reduce costs.
- Metrics-Driven Management: Established weekly and monthly performance targets, enabling proactive issue resolution and consistent monitoring of key performance indicators (KPIs).
The Results
The transformation achieved significant improvements across the entire supply chain:
|
KPI |
Improvement |
Business Impact |
|
Lead Time |
50% reduction (from >30 days to <5 days) |
Enabled competitive quoting and improved revenue by pulling in 1 month of sales. |
|
On-Time Delivery |
From ~50% to consistently >95% |
Increased customer satisfaction and confidence in forecasts. |
|
Direct Material Cost |
15% improvement in Year 1; 5% YOY savings |
Over $2M in annual savings; improved market competitiveness. |
|
Inventory Turns |
20% improvement |
$3M cash flow boost and reduced obsolete write-offs by $0.5M. |
|
Supplier Performance |
Delivery improved from ~50% to >95% |
Enhanced reliability and contributed to inventory reduction. |
Key Achievements
- Implemented an effective Sales and Operations Planning process within three months.
- Secured organizational buy-in for a seamless transition to a new supply base strategy.
- Conducted factory value stream mapping to identify and execute improvement opportunities.
- Negotiated fact-based cost reductions with top 10 suppliers, achieving quick savings.
- Addressed top underperforming suppliers, taking corrective action in three months.
- Established organizational goals and accountability to promote collaboration.
Contact Us
Ready to transform your supply chain and achieve measurable results? Partner with Waypost Advisors to streamline your operations, improve performance, and drive profitability.
📧 Email: info@waypostadvisors.com
📞 Phone: (952) 222-8189
🌐 Website: www.waypostadvisors.com
Thank you for considering Waypost Advisors as your trusted partner in supply chain management excellence. We look forward to supporting your business goals.