Case Study:
Stabilization and Process Optimization
Problem:
A large polypropylene manufacturer was experiencing a difficult APO supply chain implementation, which had a significant negative impact on working capital and customer service.
With a regional manufacturing and distribution network that was reaching customers nationwide (including Mexico and Canada), the need to remediate the system and GATP process failures was urgent.
Solution:
Endeavor’s services were retained to address these processing and forecasting issues. After a successful emergency stabilization, the next step was to evaluate opportunities for the client to optimize its operations and management processes in their supply chain, sales, and transportation departments.
The Endeavor team analyzed various system failures, and then reconfigured the APO GATP functionality to work within the context of the client’s supply chain. Our solution included developing a new Order Acknowledgement process to work with the reconfigured GATP process, and streamlined everything by removing unnecessary development enhancements.
Our expert also re-trained key users on GATP and managing backorder processing, and provided recommendations for Demand planning consensus and sales forecast process.
Benefit:
To date, Endeavor’s performance management program has yielded the client significant financial benefits, as well as a revitalized workforce. During the first quarter following the Endeavor solution implementation, the client saved $4.4 million in operational leakage.
Additionally, over a 3 month period, the client has improved their forecast accuracy by 20% and is well on the way to best in class forecasting. This has resulted in improved supply chain planning and customer service levels. Endeavor was also able to optimize the client’s operational working capital, inventory levels, and supply chain alignment.