Driving Operational Improvements
Companies preparing to launch a growth strategy are well advised to stabilize their operation and optimize their profitability before they launch their growth initiative. However, no matter what stage of growth your company is currently in, there is always pressure to reduce cost, and an opportunity to streamline you operational processes. We can help you accomplish this goal in a number of ways:
Business Profitability Analysis – Which of your product lines and customers are giving you the best return on investment? Are some of them dragging down the performance of your business? Business profitability analysis will answer these questions.
Current State Value Stream & Process Analysis – Do you understand the physical, financial and information flows across your end-to-end supply chain, from your customers’ customers to you suppliers’ suppliers? Do you know how your business processes really operate? Understanding how your business really operates is a critical first step in driving operational improvement. Until you understand your business processes you cannot be in control of your business and drive process improvements. We have a variety of tools, ranging from butcher paper & Post-it® notes to business process modeling & value chain simulation programs, to help you evolve a detailed understanding of how your business operates.
Value Stream Strategy & Logistics Network Analysis – Are your factories and distribution centers in the right locations? Can you save money and improve service levels by postponing final configuration of your products? Are your factories and distribution centers loaded with the right products? Are you using the right transportation services? How will the answers to these questions change if oil returns to $150/barrel or carbon emissions are restricted? Once we build a simulation of your value stream, we can test different scenarios and determine the best value stream strategy and distribution network for you business.
Sales and Operations Planning & Execution – Does your company have a cross-functional process, led by senior management, to balance production and sales, coordinate new product introductions, ensure your financial projections reflect the true state of your business and make adjustments to your plans to stay on course? If not, we can help you implement a Sales and Operations Planning (S&OP) to help you implement a coordinated response to changing market conditions and to shape demand for your products.
Inventory Optimization – Are you holding the minimum about of inventory necessary to achieve your desired customer service levels? Are you holding it in the right places and in the right configuration? Inventory optimization utilizes your value stream simulation model to determine your optimum inventory strategy.
Packaging Optimization – Have you designed your product packaging to minimize cost across your entire supply chain, including warehousing and transportation? Are you using the right number and type of boxes in your pick & pack operations? Packaging optimization can ensure your packaging is designed to provide the lowest delivery cost.
Transportation Purchasing – Are you sure you have negotiated the lowest possible transportation cost? We have access to a transportation purchasing consortium so that you can take advantage of the combined purchasing power of a number of companies. There are no volume commitments, so you can utilize the consortium rates only when they are lower than your own negotiated rates. We can also audit your freight bills to make sure you are being charged the proper amount, in accordance with your contracts.
Lean/Six Sigma Program Review – Are your process improvements programs driving quantifiable improvements to your bottom line? Or are you like most companies, who are disappointed with the results of their lean/six sigma programs? Driving productivity improvements in processes where you already have excess capacity doesn’t improve your profitability. We will focus your process improvement programs on the constraints in your value stream that are limiting your profitability. By focusing on the bottlenecks in your business, your productivity improvements flow immediately to your bottom line.
Carbon Footprint Analysis – Do you know how much carbon emissions are generated in the manufacturing and distribution of your products? Regardless of your personal views about global warming, it is likely that governmental and consumer pressure will continue to build to reduce carbon emissions. Utilizing your supply chain simulation model, we can help you reduce your current carbon footprint and analyze scenarios for reducing your overall carbon emissions.
Master Data Audit & Maintenance – Is your ERP system making decisions with bad data? When was the last time you verified the lead times and reorder points in your system? Unless this data is accurate, your investments in advanced planning systems and supply chain process improvements will be largely wasted. We can audit your master data to ensure you have accurate information and setup an ongoing management process.