Supply Chain Solutions
Major Logistics Services Provider Gets Processes Makeover Supply Chain Solutions, Inc. Reduces Multi-Million Dollar Inventory Discrepancies to Under a Thousand Dollars
The Client:
Supply Chain Solutions, Inc. is one of the nation's leading logistics services providers. SCS manages the cell phone configuration and delivery for a national cellular company with thousands of customer orders daily. They carry out the complex task of custom configuration of dozens of brands and models, as well as hundreds of accessories, all to be delivered exactly as the end customer specifies. SCS collects the orders and is able to accurately ship within 12 hours, providing the client with an efficient direct delivery mechanism.
Challenges:
SCS excelled at servicing their customer early in the relationship, and consequently won the bid that led to a substantial increase in business. But when the delivery trucks began to arrive, SCS couldn't handle the inventory that had too rapidly expanded into the hundreds of millions of dollars. Information systems needed to be installed immediately to provide floor managers with information that would allow them to make tactical decisions in real time.
Solutions:
ICI queried SCS's management and warehouse teams to understand and document what processes and rules drove business decisions. Within days, ICI consultants began executing the tasks that would provide targeted improvements. Working closely with SCS, ICI developed warehouse management applications and processes that improved operational efficiencies in real time. Within a month, ICI and SCS had successfully developed information systems that brought the situation under control. Results In 90 days, the variance within a $275 million dollar inventory improved from hundreds of thousands of dollars daily to $680. A stressed client relationship was quickly reversed into an efficient customer service win. SCS has since expanded operations, adding additional high profile customers, as well as breaking into new markets.
