An international, consumer packaged goods company looking to stabilize overhead and focus line productivity.
The client was experiencing unstable labor costs associated with material replenishment and line production. Overhead was increasing and causing morale and plant productivity to stagger. There was no formal process in place for supply room shelf management nor was there a formal process for product replenishment on the production line. Expense leaks were identified in the management of inventory min/max levels, time spent moving indirect materials around the plant and lack of visibility into what was on hand and what was needed.
In order to meet the clients’ requirements, we moved to a Vendor Managed Inventory (VMI) system. We now handle the start to finish replenishment process including item set up and delivery, min/max level maintenance, point to consumption product delivery and product re-order. The client approves our re-orders based on our VMI solution put in place and now experiences higher fill rates, tighter inventory management and the ability to stabilize overhead and refocus on core plant production objectives. Plant floor morale has also improved based on the point to consumption delivery process.
- Reduced labor expense tied to non-revenue generating activities
- Improved inventory management and higher fill rates
- Reallocation of resources to focus on core business objectives