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Food Manufacturer

NEEDS-BASED RESULTS

 

Food Manufacturer

SITUATION

Food manufacturer sought to improve its ability to meet customer delivery requirements and reduce costs associated with warehousing and distribution of inventory.

DRIVER GOAL

  • Increase order fill rates from 95% to 98%.
  • Improve on-time delivery from 79% to 98%
  • Increase inventory turns by 10%.
  • Improve first pass yield by 5%.

RESULT

  • Improved order fill rate to 98%.
  • Improved on-time delivery to 98%.
  • Increased inventory turns by 16%.
  • Improved first pass yield by 10%.
  • Reduced set-up time by 50%.
  • Reduced overtime by 50%.
case study image, CS-118

Case Study

Optimize Customer Delivery & Reduce Distribution Costs

Issue

A major food manufacturer sought to improve its ability to meet customer delivery requirements and reduce costs associated with the warehousing and distribution of large quantities of inventory previously maintained to meet increased customer demand.

Highland Approach

The organization’s complex and dispersed footprint (eight manufacturing facilities) called for a detailed strategic plan to optimize supply chain efficiencies and a management system to leverage available resources and materials. The team worked closely with leadership to create and implement these elements, then used a variety of Lean Manufacturing tools and methods to refine the system, removing waste and constraints, improving equipment uptime and utilization and decreasing the need for excess inventory.

Actions Taken

In eight manufacturing locations:

  • Developed and implemented an external-facing process that focused the organization on meeting customer requirements.
  • Designed and put into place a System For Managing that reacts to customer demand and channels that demand into the most cost effective and timely fulfillment location.
  • Developed and implemented a logistics management system.
  • Implemented Lean Manufacturing concepts on the shop floor with focus on first pass yield, throughput and equipment utilization.

reduced overtime by

50%

while increasing customer service effectiveness

Related Information

subject matter-based

Client Partner

Financial Services, Marketing & Consumer Products

Petrina is a creative, hands-on executive with over 25 years of international business experience with a proven track record of working collaboratively across traditional boundaries and solving complex operational issues. She previously served at the senior executive level of one of North America’s leading financial institutions and several global consulting organizations. There, she led engagements serving industry-leading clients in United States, Canada, England, Germany, Austria, Switzerland, Norway and the Netherlands.

Senior Consultant

Supply Chain

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Project Leader

Sales, Marketing & Consumer Products

North America

Bill is a senior project leader with more than 20 years of hands-on experience in assisting multinational companies by deploying his expertise in Lean Six Sigma and Business Process Management tools, tactics and strategies. He has deep expertise in sales and marketing improvement, supply chain optimization, fixed-cost reduction, channel management, total production management, balanced scorecards and post-merger integration.