OUR PREVIOUS WORK: HOME APPLIANCE/WHITE GOODS
Project Brief and Highlights
Industry: Home Appliance/White Goods
Year-over-year inventory reduction of 32.4%
Raised inventory turnover from 5.5 to 17.6 times at branch warehouses
Reduced production planning cycle from 14 days to 2-6 days for all national branches
The company operates two manufacturing facilities, over 35 distribution centers, 200 SKUs, and has a production capacity of over 100,000 units per month. Once Kong and Allan Consulting was selected, three specific areas of improvement were identified:
Inventory and Planning Management
Sales and Operations Planning
Logistics and Distribution
Inventory and Planning Management
Before: An excessive amount of idle and overall inventory with a high stock-out rate.
After: Implemented a safety stock planning model that reduced inventory.
Key Results:
Year-over-year inventory reduction at central warehouse of 32.9%
Year-over-year inventory reduction at branch warehouses of 33.9%
Sales and Operations Planning
Before: No S&OP. Supply and demand were rarely linked.
After: Provided a framework, strategy and keys to success for implementing S&OP.
Key Results:
Reduced production planning cycle from 14 to 2-6 days for all branches
Raised inventory turns from 5.5 to 17.6 times at branch warehouses
Logistics and Distribution
Before: Few base systems and processes for more complex logistics re-engineering initiatives.
After: Initiated a carrier bidding system to lower overall logistics spend and introduced KPI.
Key Results:
Implemented KPI tracking process with cost savings of 5-10%
