Our client, a large corporation with a global manufacturing foot-print in the business of selling industrial appliances, had troubles with delivery accuracy and market responsiveness. To further complicate those issues the forecast accuracy was poor and the process responded slowly to changes in demand. It was decided that the first course of action was to get shorter and more predictable customer delivery lead times.
To get the requested results a three pronged approach was chosen, better processes for internal communication, a differentiated product offering and a differentiated order structure.
- Through Sales & Operations planning where the insights of market segments, product centres and operations were combined a better internal understanding of the market environment was achieved.
- By dividing the product range into standard and non-standard products with different set lead times and processes a more stable production could be reached.
- Through charging for, and thus limiting, special orders with more demanding lead time requirements the backlog could be capped.
Through the recommendations offered by MYSIGMA the client was able to cut lead time for the standard range by 50% to only ten weeks, which have led to a significant amount of new customer contracts. Furthermore the increased internal understanding of the market have led to a much higher responsiveness to changes in market demand.