Manufacturing, Distribution and Trade Success Story

Assessing Operational and Information Flow
for a Third Party Procurement and Manufacturing Provider

The client provides integrated supply chain solutions supporting in-store merchandising. Their activities encompass display design, purchasing, distribution, kitting and light manufacturing functions.
The client sought to reduce operating and inventory costs for a major customer. This was the first of a multi-phase project designed to identify cost reduction initiatives.
To increase their service level and obtain more business from their customer, the client wants to improve efficiencies and reduce overall costs. They requested that The Revere Group assess the information flow and order management processes of their operations as the first phase in driving down their customer’s cost.

The client manages the distribution of Point of Sale (POS) display materials with a global leader in manufacturing of consumer packaged goods. They currently service 40% of their customer’s POS activity, with the remainder being served internally and with a few other service providers.

The operation’s performance data was analyzed using a relational database designed by The Revere Group. The analysis provided the starting point for a detailed process mapping.
The process maps followed a value stream mapping methodology to detail the value and non-value added processes with the distribution and manufacturing facility. Inbound and outbound flows were mapped using this methodology.
The Revere Group recommended the development of documented processes supported by written communication and training. This project laid the foundation for Phase II, which provided a detailed inventory analysis and layout of the distribution facility.
The ultimate result was the elimination of 20% of on-hand inventory and a corresponding reduction in space needs.