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Igniting Retail Growth with optimized and enhanced supply chain

  • Stakeholder: German ‘Mittelstand’ company
  • Industry: Retail
  • Duration: 5 months
  • XQI Manager role: COO
Background Overview

Strategische Lücke und Pandemie-Druck

A medium-sized company with both wholesale and direct sales operations battles a strategic gap and mounting pressure from the Pandemic. The firm is faced with a dual challenge: the parent company demands a strategic reassessment of operations and optimized delivery performance, while the Covid-19 pandemic disrupts the supply chain.

The Challenge

Three Critical Bottlenecks

The company is struggling on several fronts; ambiguous operations strategy and a lack of location concepts, while delivery performance, at only 86% OTIF (On-Time Inventory), was significantly below the target of 93%. Additionally, the Covid-19 pandemic exacerbated the situation due to disrupted supply chains, fluctuating orders, and strict hygiene regulations.

Strategy

Data-Driven Decisions and Crisis Management

Data-driven analyses and benchmarking with IT/automation providers formed the basis for the new target structure. In conjunction with this, a pandemic strategy ensured delivery capability. Daily production meetings and weekly PDCA cycles address the root causes to increase OTIF.

Implementation

Realised rapid progress despite adverse external conditions

Inventory levels were strategically increased, and suppliers were realigned. By removing bottle necks production capacity was doubled and the OTIF value rose to 93%. Simultaneously, a cost-efficient site concept and insourcing were implemented. Furthermore, flexible workforce planning was implemented to compensate for fluctuating order volumes.

Results

OTIF from 86% to 93%

In 5 months, delivery performance increased from 86% to 93%.
OTIF improved the delivery capability of secure and cost-efficient location concepts.

  • OTIF improved
  • Delivery capability enhanced
  • Cost efficiency

Case study lead
Stephan Franken

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