Case Study: Supply Chain Project Management - Transforming Supply Chain Operations 

Expert Resources to Facilitate Complex Initiatives 

The Key Challenge: 
A leading North American manufacturer and distributor of consumable medical devices acquired another company that produced similar products. This acquisition required complex network optimizations and resulted in two plant closures. The organization lacked in-house supply chain management consultants and project managers with the expertise to effectively manage the transition. 

Waypost Advisors, a leader in supply chain consulting, assigned a seasoned supply chain project manager to serve as the voice of the supply chain for assigned projects. The advisor’s responsibilities included organizing supply chain needs, allocating resources, managing timelines, and ensuring business continuity during this complex transition. This initiative encompassed all facets of the supply chain, including inventory planning, sourcing, raw materials management, transportation, warehousing, and coordination with non-supply chain functions. 

The Approach: 

Over the course of more than a year, the Waypost supply chain project manager led initiatives for manufacturing relocations, supported company integrations, and served as a supply chain expert for over 15 business integration projects. 
 

Key Initiatives: 

• End-to-End Supply Chain Project Management for Plant Shutdown 

• Inventory Planning for Finished Goods (Bank Build) 

• Plant Transfer Raw Material Analysis Reviews 

• Raw Material Storage Modeling 

• Raw Material Excess and Obsolete Analysis 

• Process Deployment: Raw Material Intercompany Movements 

End-to-End Supply Chain Project Management (Plant Shutdown): 

Objective: Manage supply chain activities for a seamless plant shutdown while maintaining operational continuity. 

Key Aspects: 

1. Shutdown Planning and Strategy Development:
   • Created a detailed project plan outlining milestones and assigning roles and responsibilities.
2. End-to-End Supply Chain Collaboration:
   • Adjusted supplier contracts and ensured smooth warehousing and transportation planning.
3. Stakeholder Communication: 
   • Provided regular updates to internal stakeholders, including plant management, production teams, and corporate leaders. 

Despite overlapping initiatives and changes to project scope, the team successfully transferred all product lines from one plant to another, maintaining operational continuity. 

Inventory Planning for Finished Goods (Bank Build): 

Objective: Develop a systematic approach to increasing finished goods inventory levels during plant transitions to ensure customer demand is met. 

Key Aspects: 

1. Demand Forecasting:
   • Analyzed sales data, SKU rationalization efforts, and new business projections to align inventory with customer demand. 
2. Risk Management: 
   • Identified and mitigated risks like supply chain disruptions and warehouse constraints. 
3. Cross-Functional Collaboration: 
   • Worked with production and warehouse teams to align manufacturing schedules and optimize storage space. 

Results: 

• Achieved a $2.45M bank build inventory approval within tight timelines to support customer demand during the transition. 

Plant Transfer Raw Material Analysis Review: 

Objective: Ensure efficient transfer of raw materials between plants during the consolidation process. 

Key Aspects: 

1. Raw Material Inventory Assessment:
   • Evaluated current stock levels, demand, and storage conditions at the originating plant.
2. Transfer Feasibility Analysis: 
   • Analyzed logistics, production timelines, and inventory impact to facilitate seamless transfers. 

This initiative minimized disruptions and ensured timely vacating of the closing facility. 

Raw Material Storage Modeling: 

Objective: Align storage needs with future network optimization plans over the next two years. 

Key Aspects: 

1. Current Storage Assessment: 
   • Analyzed storage capacity and infrastructure at existing facilities. 
2. Scenario Planning: 
   • Created six raw material storage models tailored to plant-specific needs and anticipated growth. 
3. Stakeholder Collaboration: 
   • Engaged with warehouse managers and operations leaders to align strategies with organizational goals. 

Raw Material Excess and Obsolete Analysis: 

Objective: Identify and mitigate excess and obsolete raw materials to reduce costs and optimize inventory levels. 

Key Aspects: 

1. Inventory Review and Data Collection: 
   • Conducted comprehensive assessments of raw material inventories across multiple facilities.
2. Excess and Obsolete Identification: 
   • Identified over $500K in excess and obsolete inventory due to SKU rationalization and other factors. 
3. Lifecycle Management Improvement: 
   • Addressed gaps in lifecycle management processes to ensure effective inventory oversight. 

Process Deployment: Raw Material Intercompany Movements: 

Objective: Standardize and optimize processes for transferring raw materials across manufacturing sites. 

Key Aspects: 

1. Workflow Mapping: 
   • Developed process maps for intercompany transfers, considering different ERP systems (SAP and GP).
2. Standard Operating Procedures:
   • Created SOPs for sales order processes to streamline intercompany raw material movements. 
3. Training and Support: 
   • Delivered training and ongoing support to ensure successful implementation of new processes. 

The Result: 

In just over a year, Waypost Advisors, one of the best supply chain consulting companies, delivered measurable results across multiple supply chain initiatives. These included: 

• End-to-End Project Management: Efficient plant shutdown and product line transfers. Improved Inventory Planning: $2.45M bank build inventory to ensure customer demand was met. 

• Optimized Raw Material Transfers: Seamless material movements with minimal disruptions. 

• Cost Savings: Over $500K identified in excess and obsolete materials. 

Client Feedback: 
“Your expertise has been incredibly enlightening and instrumental. We could not have planned the plant shutdown without you.” – Project Management Office 

Partner with Waypost Advisors: As a leading supply chain consulting firms, Waypost Advisors specializes in: 

• Supply chain management consulting services tailored to complex challenges. 

• Logistics and supply chain consultants delivering measurable results. 

• Boutique supply chain consulting firms offering customized solutions for unique business needs. 
   

📧 Contact us today to transform your supply chain and achieve your business goals. 

📞 Phone: (952) 222-8189 
🌐 Website: www.waypostadvisors.com