Addressing Materials Management challenges
A global leader in compressors and accessories aimed to enhance its supply chain performance with integrated materials management: from R&D product design through sourcing, inventory management, and service-after-sales. This required establishing a common operational platform and a standardized best practice guide for its two business lines. Additionally, key performance indicators like delivery and stock turnover needed improvement.
Ambition: Transforming Materials Management into a core competency
Building transversal materials management practices throughout the Product Life Cycle (PLC) offered significant potential to enhance operational efficiency and improve key supply chain metrics. High coordination across departments and a structured approach led to aligned objectives for streamlining materials management throughout the end-to-end supply chain.
How we helped: Materials Management as a core competency
Support was provided in stages to transform materials management. A broad framework and Materials Management Playbook were established, and materials managers were encouraged to obtain APICS certification (CPIM) to align new practices with company goals and track progress.
A company policy was implemented to make materials management a core competency for every employee, including training and support for a smooth transition and adoption of new practices.
Results: Materials Management
The company has completely redesigned its materials management organization. A standardized organizational structure was created, and distinct responsibilities were outlined. A skills test for all materials managers was introduced, contributing to a major saving in labor productivity. The company also recorded positive results in delivery reliability.
Ready to transform your materials management? Contact us today to learn how we can help you.
