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Optimization of key supply chain enables significant productivity improvements and restores customer relationship

Issue:

Improve supply chain for automotive decorative door aluminum trim, a new product line for the company.  Client was experiencing excessive scrap rates, low productivity, quality issues, excessive in process inventory, missed shipments, and downtime with the automotive customer. Automotive customer was also threatening to remove client from future new business.

Implementation:

Utilizing Kepner Tregoe, Shainin Red X, and statistical methods, Cornerstone led a team from the client that was able to improve the overall supply chain cost structure by 75%, stabilize production flow and on time shipping performance at 3 facilities and improve the customer relations by eliminating the associated stress on current and new business.  Key changes resulting from Kepner Tregoe analysis included:

1.  Aluminum raw material supplier changed which immediately improved scrap, productivity and missed shipments

2.  Clear boundary samples created to standardize product quality expectations

3.  Internal and external KPI’s implemented for complete supply chain transparency

 

Results:

1.  Supply chain cost structure reduced by 75%

2.  Supply chain in-process inventory reduced by 100%

3.  On time shipments stabilized, missed shipments eliminated

4.  Customer relationship enhanced and strengthened, new business opportunities continued

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