The customer is an Italian jewelry manufacturer with a global presence across 30 countries.
Business Challenge
The client has a Supply Chain and Operations organization composed by several small suppliers which results in a high level of gold equivalent WIP inventory. In that context the client needed to identify solutions to reduce stock and effort in terms of manpower linked to overprocessing and rework.
Approach
The project included the following steps:
- Assessment of end-to-end supply chain through Value Stream Mapping with identification of waste and stock accumulation (internal and external)
- Identification of critical issues on demand, SL and production planning processes that generate rework
- Analysis of non-conformities with QA matrix
- Inventory Breakdown Analysis and problem solving
Results
- 39% reduction of warehouse coverage respect the average value of last year
- 30% reduction of lead time for main product families
- List of middle/long term improvement opportunities to reduce inventory
- Power BI dashboard to monitor main Supply Chain KPIs and performance
