10 Feb Improving On-Time, In-Full Performance
Client:
A $1+ billion company was shipping only 85% of orders on time in full (OTIF). Furthermore, the company had over 120 million units of inventory on hand to try to improve the OTIF figure and was still not making headway in improving OTIF.
Goal:
Determine how to improve OTIF, while simultaneously reducing total inventory.
Results:
eMRI consultants worked with the client to completely revamp the multi-plant scheduling process to reduce discrepancies between product demand and manufacturing output. Concurrently, eMRI consultants reviewed and enhanced the demand forecasting models for the best-selling products and reduced forecasting error by between 5% and 90% per SKU. Using the improved demand forecasting, further analysis was performed to determine the optimal inventory levels to ensure 95% OTIF. Today, OTIF stands at 95% and inventory has been reduced by over 20 million units.
Savings:
$11 million working capital cost reduction.
