From Struggling to Surging: Better Supplier Management that Improves Performance by 80%

Global cookware manufacturer implements Lean practises with China-based suppliers to improve communication and effectively meet inventory and production planning requirements.

The Global Pandemic brought unprecedented challenges to the home appliance industry. With consumers forced to spend more time at home, demand for household appliances skyrocketed, putting immense pressure on manufacturers to meet delivery requirements. However, one manufacturer was able to not only rise to the challenge but also significantly improve their supply chain operations. In this case study, we explore how this manufacturer was able to improve supplier on-time delivery by 80% and increase throughput by over 45% during a time of significant growth.

Challenge

Multiple suppliers that had issues with delivery, inventory, and product quality.

The suppliers were not meeting delivery requirements as a result to significant market growth prompted by the global pandemic. In addition, the manufacturer was struggling with an unsuccessful new product launch; due to difficulty moving into mass production; partnered with depending on external supply chain experts to carry out the launch plan successfully.

Solution

Assessed current capability with regard to (2P) production preparation, ramp-up, mass production, supply chain management, and process capability

Communication effectiveness was reinforced between purchasing, planning, and production departments, as well as with Tier 1 and 2 suppliers. KPIs were re-established and the inventory control system was redesigned to ensure optimal results.

Results

Improved supplier on-time delivery by 80% using better supplier management practises

Monthly throughput increased by over 45% in just two months, which was attributed to the implementation of a daily production plan instead of a weekly one. Additionally, the local team was trained to sustain these improvements.

Finally, the scope of the project was expanded to cover 5 plants, which was an increase from the original plan of 2 due to the notable outcomes. These results demonstrate the effectiveness of the solution implemented in the case study. 

 

Topics in this Case Study

At a Glance

Client

Global cookware manufacturer

Results

  • Implemented Lean practises with China-based suppliers to improve communication and effectively meet inventory and production planning requirements
  • Operational improvements at key suppliers increased on-time delivery by 80%

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