SKUs Optimized for Safety Stock
OTIF Improvement
Months to Realize Initial ROI
A leading manufacturer of construction materials faced a persistent challenge in maintaining their on-time and in-full (OTIF) delivery performance. With OTIF rates stuck in the low 60% range, customer satisfaction plummeted, threatening market share and long-term growth. Recognizing the need for immediate action, the executive management team consulted with Adonis Partners.
Adonis’ expert consultants conducted a comprehensive five week assessment to uncover key issues, including a lack of ERP utilization among schedulers and buyers and inadequate cross-functional communication. They also found an underdeveloped NPI process and minimal standardized work practices at production facilities. To address these pain points, consultants led a strategic transformation focusing on two high-impact areas: initiating ERP usage and establishing routine cross-functional communication.
Change began with cleansing master data and putting maintenance processes in place. Then a detailed model was built to calculate safety stock levels and model inventory impacts for over 4500 SKUs. Fixing the scheduling and buying issues came down to creating a standard workflow. Additionally, a weekly Sales and Operations Execution (S&OE) process ensured sustained coordination across departments.
As a result, the client saw pivotal developments. OTIF delivery improved from just 62% to 76%, with continued post-implementation progress. These changes not only enhanced operational efficiency but strengthened the company’s position in a competitive market.
Construction Materials
1800 employees | $550M Annual Revenue
✓ Streamlined planning and purchasing through ERP utilization and standardized workflows
✓ Aligned and coordinated departments with a weekly S&OE process
✓ Optimized inventory management with safety stock models