February 28, 2005
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.

1. 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
   
   
2. 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
   
   
3. Consultant identified invoicing opportunity which reduced DSO 5-10 days for a one time cash flow infusion $US 115M
   
   
4. 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.

Contact us today to speak with one of our consultants and start optimizing your supply chain and getting business results.

mike.bonelli@leadtimetechnology

About LeadTime Technology™
Founded in 1998, LeadTime Technology, Inc. is a market leading provider of technology-enabled process optimization to reduce and right-size inventory, improve forecast accuracy and service, optimize production resources, and reduce cycle time across the supply chain including manufacturing, distribution and retail. Its applications are developed by practitioners for practitioners to achieve world class operations improvement leveraging Lean, Six Sigma, and SCOR principles supported by patented algorithms and technology.

LeadTime Technology’s™ unique combination of consulting and software enables operational decisions to be clearly correlated to financial measurements to ensure rapid ROI and increased contribution to shareholder value on a daily basis. Based on Microsoft platform technology and independent of enterprise applications, the intuitive user interface distills all supply chain complexities into a simple list of recommendations for continuous flow management and synchronization in virtually any size or type of operating environment. Contact LeadTime Technology at 302-636-0866, or www.leadtimetechnology.com for more information.

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