Global cookware manufacturer implements Lean practices 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 by implementing a robust supplier management process.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; difficulty moving into mass production; lacked the supply chain expertise 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 practices
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. 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.