Challenge
A private equity-owned carve-out of digital imaging equipment company faced a significant commercial backlog, impacting revenue and yielding potential long-term market share loss.
The company needed to improve inventory management processes and deploy SIOP capabilities to quickly rationalize costs and scale the business.
Approach
- Intervened directly with suppliers to mitigate supply risk and create visibility to proactively manage backlog
- Developed dynamic, Just-In-Time statistical inventory management capabilities to reset key supply chain levers (e.g. safety stock, re-order points)
- Migrated supplier relationships to improve service levels and recapture market share
- Evaluated factory performance and lead time opportunities to close locations, shift production and reduce costs
Results
Eliminated stockouts and reduced inventory by 20% while enhancing service levels and improving cash flow
Drove 30% annual savings for core components via migration to new supply base while avoiding supply disruption
Eliminated 100% of commercial backlog; from ~6,500 units to 0 over 4-month period
Rebalanced production, reducing production footprint by 30%, supporting cost reduction and market share recapture programs