Case Study – Circa 2010-2020 Timeframe
Stock Turns- Success Story
REAL STOCK TURNS
Cost Savings Initiatives
Investments in New capital types of equipment.
Lower costs structure
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- Client – Global Top 3.
- Industry – Fast Moving Industrial Goods (FMIG).
- Geography – 9 manufacturing locations in Australia, China, India, Brazil, Canada, USA, Philippines, and Germany.
- SCM Specialization – Manufacturing footprint optimization.
POPULAR CASE STUDY
- The company had nearly 9 manufacturing locations for nearly 4,000 products which were supplied to more than 100 countries around the world.
- Average utilization of plants was 53%.
- The Supply Chain was extremely complex due to security regulations controlling the movement and storage of dangerous goods.
The MFO approach comprises four main phases that can be categorized:
- Expanded package sizes (Panamaxes).
- Reversal of information asymmetry.
- Long-term agreements.
- Official, fact-based discussions with a wider supply base.
- Variable costs assumed to be 10% above xx PVC coated aa (estimate RS); the difference in cord weights has been accounted for.
- New building to house AA and XX machines (estimate AUD X.XXM, RS); set up costs for extra capacity (estimate AUD X.XX, RS); cost of moving xxx equipment TB.
- Total Australia/Asia volume approx. 28,700,000.