Project manager for SCM achieves shorter delivery times

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At Hidden-Champion for measurement technology

A medium-sized hidden champion in the field of measurement technology was faced with considerable challenges: A high order intake and an order backlog of more than six months lead to an inefficient supply chain and more than 50% of customer orders being delayed by several months. As measures, weekly escalations were set up with key suppliers, second source suppliers were established and forecast figures for purchased components were defined. Successes include a reduction in backlog customer orders and shorter delivery times.

q

Company

Medium-sized hidden champion in the field of measurement technology (revenue €140m)
One production site and two development sites in Germany, as well as several international service companies with a total of 400 employees

p

Challenge

A high order intake and an order backlog of more than six months lead to an inefficient supply chain causing over 50% of customer orders to be delayed by several months

m

Goals

Reduction of backlog of customer orders and avoidance of material bottlenecks
Reduction of delivery times and process analysis along the entire supply chain
Identification of the necessary operational adjustments in the organizational processes

n

Measures

Set up of weekly escalations with key suppliers to resolve backlogs
Definition of forecast figures for selected purchased components as a basis for on-time deliveries
Establishment of second source suppliers to further secure supply in the short and medium term

x

Results

Reduced backorders from 50% to 10% within 14 months
Massive reduction of delivery times from more than 5 months to 6-8 weeks
Sustainable reduction of showstoppers by two-thirds
Compensation for the loss of a key supplier
Introduction of software-based tracking to measure the effectiveness of measures
Sustainable adaptation of processes and organizational structure

D

„Delivery times have never been as short as they are today in the entire history of the company.“

The client’s CEO

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