Business Objective
Our client is one of the largest Fortune 500 American manufacturers of industrial tools, household hardware, and a provider of security products.
The client wanted to improve customer service levels by evaluating On-Time In-Full (OTIF) performance across various dimensions (plants, BUs, DCs, Supply Sources, etc.), identifying root causes for OTIF failures, and driving actions to improve customer service levels.
Challenges
- Lengthy order cycles with limited visibility into certain stages of the ordering process
- Inadequate workflow for sales order blocks, leading to an inconsistent view of inventory
- Insufficient Subject Matter Experts (SMEs) possessing comprehensive knowledge of data sources, key data attributes, and their definitions
Solution MethodologyÂ
- Analyzed various data sources, including product hierarchy and metadata, customer master, sales order management, sales order blocks, and line item-level shipment data
- Developed a framework and workflow to identify the root causes of On-Time-In-Full (OTIF) failure
- Defined service level measures and additional Key Performance Indicators (KPIs) to monitor and evaluate performance
- Identified associated data sources and developed data pipelines to process and load the relevant data
- Developed intuitive dashboards to facilitate effective monitoring and reporting. The dashboards provided stakeholders with real-time access to critical information, empowering them to make informed decisions
Business Impact
- 15% improvement in OTIF, resulting in annual savings of $5 million through improved delivery efficiency
- Actionable and forward-looking inventory management framework to proactively track sales orders throughout the Order-to-Cash cycle
- Enabled a holistic view of sales orders worth $5 billion annually across business units, departments, and plants
- Improved margin, generated additional sales, and increased overall NPS score
