PROBLEM
Large SKU mix and rapid new product introductions srequired new manufacturing and supply chain capabilities to meet increased sales demands.
SOLUTION
Redesigned operating work flow:
- Create more flexible processes
- Improve supplier linkages
- Improve distribution linkages.
IMPACTS
Results, in 2 + 1 years (2 programs):
–Order Service: Enabled revenue growth from $50M to $600M over 8 years, leading to 2nd program which realized additional 4x capacity growth.
–EBITDA: Reduced unit COGS by 32% with no change in operating footprint, with an additional 80% labor productivity gain realized in second program.