16% reduction in overall operating expenses
Increases operational productivity 15-30%
Strategic Intent
Drive future growth and profitability – our client’s short-term goal was to dramatically improve domestic operations and simultaneously develop an effective supply-chain organization and to facilitate a strategy of increased outsourcing.
Situation
- Manufacturer and importer of residential and commercial furniture for U.S. and Canadian markets
- Moving from primarily domestic production to increased Asian imports
- Internal supply chain potentially inadequate to handle shift to increased outsourcing
- Slow economy produces uncertain volume demands
- Mixed organizational culture reflects merging of five companies
- CEO rapidly changes/upgrades management team
Issues and Barriers
- Several large change initiatives underway at once
- Lack of management alignment on goals and priorities
- Unwieldy and costly overhead structure
- Operations not responding to rapid changes
- Supply chain shortcomings result in excess and unbalanced inventories
- Low productivity levels across all production and distribution operations
Key Implementations
- Develop and implement new management systems and disciplines
- Streamline all key manufacturing and distribution systems with integrated quality controls and processes
- Develop and implement new supply-chain organization and supporting processes
- Rationalize plant administrative functions
- Align all management personnel with CEO’s primary goals/priorities
Results
16% Annual Operating Costs Reduction (breakdown)
- Increase operational productivity by 15-30%
- Consolidate assembly/finishing operations from two locations to one
- Reduce inventory and release capital as a result of upgrading the supply chain
Client Perspective
I could not have implemented my new organization and be as effective as we are without Brooks’ help.
— Senior Vice President, Supply Chain
