Client:
A contract manufacturer in the personal care industry
Challenge
Following the implementation of an ERP system, the Company experienced a notable decline in system utilization and adherence to defined processes. Within three months, both system and physical workflows had deteriorated, resulting in:
- Inventory inaccuracies across multiple operational areas
- Compromised integrity of item and sales data
- An erosion of trust among team members in the ERP system’s reliability
Without intervention, these challenges risked ongoing disruptions to operations, decision-making, and profitability.
Strategic Objectives
The client engaged Waypost to lead a comprehensive ERP “re-set” designed to:
- Reinforce disciplined process adherence across all business functions
- Cleanse the ERP system of inaccurate legacy data
- Restore team confidence in the system as a dependable source of truth for operational and strategic decisions
Approach
Waypost developed a two-phased roadmap to drive sustainable improvements in both physical operations and ERP processes. In parallel, an external accounting resource independently led the cleanup of financial data and processes, which continues as an ongoing effort.
Phase 1: Raw Material Inventory Accuracy
The initial focus was on chemical and compounding operations. Because the client owns all raw materials, achieving accurate visibility into this inventory was essential to supporting uninterrupted production. This phase included:
- Re-establishing and clearly defining critical operational processes
- Validating compliance between physical workflows and system transactions
- Cleaning up outdated system transactions that distorted inventory visibility
- Modifying essential ERP configurations, including MRP parameters, item and yield settings, and backflush rules
- Catching up on any delayed or incomplete transactions to bring the system current
- Cleaning and reorganizing physical spaces, with new bin and location labelling applied where necessary
- Conduct a comprehensive physical inventory count led by Waypost to create a reliable baseline
Phase 2: Packaging and Filling
Building on the foundation set by the chemicals phase, attention shifted to packaging and filling operations. Where possible, parallel work was initiated to maintain momentum. This phase mirrored the structured approach used in the chemicals area to drive consistency across all operations.
Ongoing Controls and Team Development
Upon completing both phases, Waypost introduced a rigorous cycle counting program, training the client’s team to conduct regular counts. This provided a repeatable process to maintain inventory accuracy and quickly identify any breakdowns in procedures.
Supporting Assessment Areas, Tools & Deliverables
Throughout the engagement, Waypost:
- Performed on-site assessments and process walkthroughs to identify operational gaps
- Employed hands-on validation techniques to ensure alignment with newly established standards
- Delivered detailed plans to clean up system data and executed critical transaction corrections
- Reconfigured key ERP parameters to better reflect the client’s actual operating model
- Facilitated targeted training sessions to build team competence in managing inventory and ERP functions
- Implemented a structured cycle counting methodology as an early detection system for process failures
Conclusion and Results
As a result of this initiative, the Company completed full physical inventory counts ahead of schedule for both chemicals and packaging areas. Two weeks later, the team conducted an internal warehouse bin audit (cycle count) and achieved an impressive 99.42% inventory accuracy—an outcome that demonstrated both process compliance and data reliability.
As part of Waypost’s commitment to creating and implementing sustainable change, Waypost also led efforts to develop key performance indicators to drive sustainable business performance across the enterprise into the future.