Executive Summary
This multinational industrial manufacturing company wanted to reduce costs and workload along the supply chain during the height of the pandemic. A remote TTI assessment program yielded a 4-step process which reduced cost and backlog while increasing inventory value.
The Company
With 900 employees spread across four sites located in France and Morocco, this 50-year-old company specializes in industrialization and manufacturing. Key products and services include high-quality electronic and wired boards and sub-assemblies, and the design of test systems and solutions for the aeronautics, defense, telecommunications, energy and medical fields.
The Challenge
The customer needed to reduce costs and workload in their procurement process. Due to the COVID-19 situation, the usual on-site process assessment was not possible, requiring TTI to adapt and provide optimal support remotely.
Solution
In concluding the assessment, a 4-step process improvement approach was implemented:
- Analysis of historical orders and product classification
- High-value and recurring parts were placed on a supply chain program
- Lot sizing was introduced to optimize order placement
- Rules were created for non-program parts based on rescheduling and inventory holding costs
Results
- 30% reduction of processing time in procurement
- 80% reduction in backlog rescheduling
- Reduced activity-based cost in procurement
- Reduced physical material handling costs