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 incorrect, causing high unallocated cost and disruption to the Client’s production & quality. The 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:

• Followed up with 300+ suppliers continuously on outstanding orders to confirm quantity, pricing, and expected delivery date or key components and materials, minimizing any lateness and allowing the Client’s production planning team to incorporate any delays in materials well ahead of when that inventory was planned to hit production
• Consistently updated the 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 that the Client’s management utilizes regularly.

The Results

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