Case Studies

Lean Order Fulfilment

Lean Order Fulfilment

Sector Manufacturing

Situation

ABC is a leading paint industry in Oman. They recently embarked on a lean transformation exercise. One of the key levers they focused on was streamlining their inventory planning & order fulfilment process.

Actions taken

The project focused on analyzing their demand patterns, classifying their portfolio into product groups as per demand patterns and finally creating a bespoke order-fulfilment process aimed at simplifying and streamlining the current state.

Results

The project helped simplify & streamline the entire demand management system. Inventory position was rationalised as per product group. Availability in general improved thus improving service levels. The most important impact was that panic-orders dues to shortfall reduced by almost 90%, thus signalling a significant improvement in the overall order fulfilment process.

Actions Taken – deep dive

  • Demand analysis of historic demand patterns & item classification
  • Introduction of concept of Lean Order Fulfilment
  • Revised inventory policies, demand planning, and production scheduling systems
  • Test run & scale-up of new production planning & scheduling system with revised norms
  • Sustenance and Monitoring of new system

Actions Taken – deep dive

Actions Taken – deep dive

A core team of change agents was constituted. The team was trained on Lean supply chain fundamentals and exposed to practical application of these tools. The value stream mapping exercise revealed crucial interface issues between sales, supply chain, planning and production. The inventory analysis helped classify items into Make to Stock (MTS) and Make to Order (MTO) as per their demand trends.

A new production planning & scheduling system was rolled out, which was closely linked with stock movement. This system was piloted and then rolled out in a phased manner. The tight linkages between sales, planning, supply chain and factory helped to maintain control over inventory and ensure high service levels with minimum dissonance across the value chain.

Results – deep dive

Results – deep dive