Supply Chain for
the Consumer Products
Manufacturing Industry
Consumer products manufacturing, whether involving food or beverage, health & beauty products or something else, has significant demands placed on sustaining operations, including the management of the indirect materials supply chain, of which MRO materials are a part.
How Do We Help These Industries?
We are an active partner with consumer products manufacturers in delivering supply chain reliability through stronger management of MRO materials.
Common Challenges of the Consumer Products Manufacturing Industry
- Disorganized MRO storerooms with limited controls
- Unchecked and excessive inventory growth
- Incomplete MRO data with no visibility to trends and crucial inventory
- Lack of visibility across the enterprise
- Inability to integrate existing systems with third-party providers
- Large transaction volume and low dollar amounts for MRO purchasing
- No real-time reporting
How Do We Address These Challenges?
Our fully integrated supply chain programs attack each of those challenges head on, delivering value to the often-ignored MRO supply chain. Our integrated supply program includes:
- Strategic Sourcing
- Storeroom Management
- Inventory Optimization
- Data Normalization
- Enterprise Reporting
- Continuous Improvement
A well-balanced and controlled approach to MRO gives manufacturers the ability to reduce cost of materials and improve maintenance without negatively impacting operations. All of our programs are shaped to meet your specific requirements.
We use our $500 million managed MRO spend to build even stronger supplier relationships that reduce material costs and improve inventory accuracy.
By introducing supply chain planning, improving visibility to available parts, and lowering total transactions and associated costs, we provide 25-30% total cost of ownership savings over the length of our contracts. That includes a 10-15% savings on materials.
See Us In Action
Manufacturing MRO Case Study
The Issue
Our client enlisted us to build out a storeroom management program to help organize their 50,000 SKUs! While we successfully outfitted them with an efficient storeroom process, we realized that we could help them save even more money. We noticed they were buying brand new parts, instead of implementing a maintenance repair and efficiency program. Doing this was causing them to unnecessarily hemorrhage money, so we spoke up and got to work.
Our Solution
We introduced a repair program initiative aimed at driving additional client savings while staying true to the initial goal of lowering inventory levels. Using a pre-identified list of parts that could be repaired, we formulated a repair and maintenance process t for determining when a part was to be repaired vs. replaced. One benefit to the program was the additional warranty earned in the process. In some cases, we discovered the failed part had been covered by a warranty. When the part is repaired, the warranty is extended. By buying an entirely new part and ignoring the warranty, our client was leaving money on the table.
The Numbers
We delivered 60% cost savings to the client in the first year of the initiative. To set them up for continued success, we set a minimum threshold of 53% savings when identifying which parts to replace. Meaning only repairs earning that minimum savings would be approved. Thus, saving them money and time with clear, concise guidelines on maintenance and repair.
We have a breadth of experience working with manufacturing companies and beyond. We would love to share how we helped them achieve their goals. You can find more Case Studies below.
