When a leading manufacturer in the electronics industry saw a significant increase in sales over the preceding 12 months, it experienced an unsatisfactory supply chain delivery performance with regards to both availability and reliability. While the causes of poor performance were suspected, a fact-based supply chain diagnostic was conducted by Prokura. The investigation involved:
- Detailed analysis of the company’s lead times, availability, reliability performance
- Mapping of the actual delivery performance
- Comparison of the results with a breakpoint analysis of customer preferences
- Analysis on the company’s supply chain department’s framework necessities, overall production & supply strategies, and structural & organizational elements
Based on this, Prokura established a series of ambitious but realistic targets for future improved service levels and delivery performance. In addition to the long list of identified improvement initiatives, 6 specific areas were prioritized:
- Optimization and preparation of the sales and operations planning (S & OP) process and tools
- Optimization of demand forecasting processes and methodologies
- Optimization of production planning methods
- Optimization of the global inventory strategy
- Optimization of inventory levels and calculation tools
- Development of a performance management system and related processes
To find out more about this case and other supply chain performance diagnostics, please contact Jens Holbek.
