Implementing turn rate standards help reduce inventory by 30%.
26% improvement in overall productivity


Strategic Intent

Redesign the business model to stabilize sales losses, improve customer service, cut costs and return to profitability


Situation

  • Mid-size distributor of packaging materials
  • Revenues down 24% due to economic downturn
  • Costs not adjusted to align with sales reductions, resulting in two years of losses
  • New “turnaround” CEO has sense of urgency
  • Other new senior managers learning to work together

Issues and Barriers

  • Purchasing and sales process produces excessive and aged inventories
  • Warehouse operations lack planning process
  • Distribution infrastructure utilizes too many locations
  • On-time customer deliveries at 92%, despite excess delivery capacity
  • Customer support not aligned with customer demands

Key Implementations

  • Remove sales from sourcing, pricing, input on customer demand and inventory levels
  • Set ABC standards for inventory turn rates
  • Outsource distribution activities
  • Consolidation for warehouses and distribution centers
  • Supervisory training & management effectiveness coaching

Results

R_W-CS3

Seven-month Brooks International initiative completes with key results being realized. Client returns to profitability, achieving:

  • 26% improvement in overall productivity
  • 33% reduction in number of warehouses
  • 30% reduction in total inventories
  • On-time deliveries up from 92% to 98%
  • Customer service levels up from 65% to 89%

Client Perspective

We have made a tremendous improvement in our operations, both from an execution and cost perspective. To a person, the Brooks team members were all very capable individuals and each made solid contributions to our operations.
— Chief Executive Officer


Achieve your strategic imperative & required financial objectives.
See what a Brooks International initiative can do for you.