Supply Chain Management Automotive SME
Supply Chain Support
Challenge / Requirement
With a range of customers from single product orders to large daily repeat orders, the business struggled to manage the supply chain effectively both internally and externally. Stock outs, damaged stock and incorrect picks were commonplace causing late customer deliveries. Stock value figures were incorrect and fluctuated dramatically on a daily basis, making it impossible to discern a workable lean stock level.
A number of initial “Baseline Establishing” actions were taken including a full shut down stock take and the implementation of an authorised personnel only policy in the stores location. Once a baseline was established further reinforcing activities were undertaken including daily cycle stock checking, setting Kanban levels for fast moving lines store optimising and reorganisation. Alongside these activities a number of supply chain management projects were implemented increase supply chain efficiency reducing stock outs, damages etc, these projects included: working with a fixings partner to vendor manage all fixings; implementing a “line side” stock management system for the daily fast moving lines; Installing clear quarantine areas for damaged stock, stock to be returned to supplier etc.
Once the baseline was set, the proactive actions and projects undertaken enabled the company to optimise how goods flowed through the facility with minimum touch points reducing the opportunity for errors to occur.
By removing the requirement to “kit” fast moving lines and the introduction of Vendor Managed Inventory for fixings this allowed for resources to be focused on more value add activities, with a nett effect of reducing instances of stock outs by 95%, reducing instances of damaged/incorrect goods being fitted at production by 70%.