Simplification of Export Supply Chain

Post date: Mar 12, 2013 7:50:43 AM

PROBLEM A Luxembourg company exporting globally repeatedly failed to deliver on time due to wrong product in stock, incorrectly forecasted by customer service planning; despite having the equivalent of one year’s sales in stock in Asia. Turnover was lost to competitors.

SOLUTION Business Excellence worked swiftly with the organisation's production, logistics and sales department, applied lean principles to design a self-regulating intercontinental supply chain using "Kanbans" to manage customer needs through the supply chain. Employees were trained to use the system in one day.

RESULTS Cost invested in stock was reduced by 70%. Customer satisfaction from on time deliveries is at 100% no missed deliveries have occurred since. The capital investment to implement the project, which replaced multiple complex computerised systems was less than 300€ and 700 000 € of working capital has been freed up for further expansion of global exports.