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LeadTime Technology™ firmly believes that expecting real value for your consulting and information technology dollars spent is a requirement. To ensure this, we utilize only well experienced, Senior Consultants in every aspect of our engagement. LeadTime Technology™ Consultants will perform an Opportunity Assessment analysis of your supply chain processes, practices, logistics, and information flow using LeadTime Technology™ technologies and techniques to define the potential business case before proposing any implementation. Our clients realize immediate benefits from the Opportunity Assessment itself understanding where areas for improvement exist in their supply chain operations, with quantified economic stake for each area identified.
1. Identification of Personnel
- Key individuals involved in the flow of information, materials, and money associated with supply chain activities
- Examples of key personnel:
- Business Management
- Planning Management
- Production Schedulers
- Inventory Planners
- Demand Managers
- Distribution Managers and Logistics Planners
- I.T. Professionals
- Customer Service Management and Representatives
- Manufacturing Management and Shop Floor Control Technicians
2. Interviews
- Generally 1 to 2 hour interviews with the people identified
- Key individuals such as Production Schedulers will be interviewed for 2 to 3 hours
- An “interview coordinator” greatly facilitates the scheduling of the interviews
3. Analysis
- Historical supply chain data is analyzed using LeadTime Technology™ methodologies and tools
- Real world supply chain realities are combined with advanced LeadTime Technology™ statistical methods to identify the business case for the use of the LeadTime Technology™ tool suite and improved business practices and processes
4. Report-back
- A Management report-back is conducted to report the findings of the supply chain analysis and quantify the business opportunities for proceeding with an LeadTime Technology™ system implementation
- A detailed proposal accompanies the report-back
Opportunity Assessments Pay For Themselves
During a recent Opportunity Assessment (OA), a LeadTime Technology™ consultant identified the following opportunities for savings. These observations, along with minimal follow-through by the client, led to significant savings that more than paid for the cost of the OA.
- Consultant demonstrated that inventory visibility and forecasting period are a critical input to inventory levels. By measuring the inventory more frequently (from monthly to weekly) the forecast variability is reduced and thus safety stock levels reduced from $5 MM to $1.5 MM
- With product Y in an oversold capacity constrained position; consultant analyzed the change-over cost vs. inventory carrying cost. As a result, a recommendation was made to increase product Y production by 7% via to fewer change-overs. Accounting for carrying cost of inventory, this would provide additional $US 45M in incremental margin via increased sales
- Consultant identified invoicing opportunity which reduced DSO 5-10 days for a one time cash flow infusion $US 115M
- Using the client’s historical data, the consultant simulated the inventory levels that would have been recommended by the LTT™ software for the previous year. This simulation identified warehouse min/max level to be used for following year as well as a capacity planning estimate for the manufacturing, planning and sourcing teams for the upcoming year
Identified hard $163.5M of decreased cost or increased cash flow as well first cut capacity plan for the following year.
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