Insights

Our client was a manufacturing company based in Sydney speclized in making devices used in airport assisting in check Ins/check outs. They used third party manufacturing services with factories based in Czech republic, Japan, Florida and Sydney. However, they had a centralized warehouse in Sydney to keep all the major complianced based components which they would import from various suppliers from across the globe and then ship them as and when projects are awarded geographically to the respective suppliers.

This approach would not result in longer lead time but would also cause extra frieght cost. 

We changed this approach through establishing project forecasting and anticipating furture requirements through cohesive S&OP process.

We established stock level accuracy at various factories by engaging with the shopfloor managers and developed model to ensure we could figure out the requirements at site. Next step was to arrange shipment directly to the factories when and where needed. As a consequences, we not only saved time required to order the stock by ordering in advance , but also liked sources to the factory for direct shipment which saved frieght cost and enhanced supply chain efficiency