Supply chain optimization strategy for building products manufacturer

Challenge

A leading producer of residential building products sought a strategy to deliver operating efficiencies and customer service improvements. Strong demand, a network of facilities acquired over the years, an expanding product portfolio and a mix of supply chain practices resulted in rising costs, lost revenues and excess inventory.

Approach

• Service assessment: Analyzed order/delivery data and interviewed sales staff to understand service performance, determinants and segmentation opportunities
• Internal capabilities: Assessed plant operating models and practices, analyzed planning and execution capabilities across the organization and focused on performance gaps
• Aggregation and production process alignment: Identified significant potential productivity gains from order aggregation; reprioritized and streamlined process steps to rapidly and reliably meet daily make-to-order requirements
• Modeling: Built models to test the impact on cost, service and inventory of alternative manufacturing strategies and material flows
• Recommendations: Developed alternative operating strategies, anticipated impacts and an action plan to harvest opportunities and support growth

Results

• Identified substantial service improvement, operating cost savings and inventory reduction opportunities
• Helped drive a sea-change in the company’s view of its networked supply chain, leading to renewed energy and consensus around key initiatives
• Created time- and resource-based plan for implementation of high-priority initiatives and strengthening of supply chain management capabilities