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Manufacturing Client

Client’s Problem

A manufacturing client purchasing tens of millions of raw materials per month was suffering from late orders and changing input prices from a diverse network of hundreds of vendors. Due to the complex nature of the Client’s supply chain, the Client’s ERP standards for lead time and cost were also all incorrect, causing significant unallocated cost and disruption to Client’s production & quality. Client was regularly missing delivery dates to end customers and had difficulty hitting budget on each order.

General Analytic’s Solution

Client partnered with General Analytic to form a supply chain solutions team that that:

  • Followed up with 300+ suppliers on a continuous basis on outstanding orders to confirm quantity, pricing and expected delivery date or key components and materials, minimizing any lateness and allowing Client’s production planning team to incorporate any delays in materials well ahead of when that inventory was planned to hit production
  • Consistently updated Client’s ERP with “actual” cost and lead times, and recorded causes of vendors’ delays for optimized decision making
  • Streamlined the procurement oversight processes with KPI reporting & other analyses Client’s management utilizes on a regular basis

The Results

  • Lowered outstanding orders from vendors from $7 million dollars to under $1 million dollars, dramatically improving Client’s production throughput
  • Lowered unconfirmed orders from suppliers from 12% of total orders to 2% of total orders within first 4 weeks of the partnership
  • Provided regular updates on changing lead times and cost to Client to make more knowledgeable and strategic future purchasing decisions
  • Optimized supply chain KPI reporting for Client

Grow Your Business With General Analytic

This is just one example of what General Analytic can do!