A leading aerospace manufacturer had undergone a major, multi-site SAP implementation and spent millions of dollars on systems and infrastructure to improve their business. With over $200M in purchased inventory on hand, this company was on a non-stop mission to reduce inventory and free up working capital while simultaneously eliminating shortages.
Despite those major investments that worked well for certain areas of the company, the supply chain organization still managed their activities using labor intensive and non-standardized Excel spreadsheets to fill the gaps in standard SAP reporting. These workarounds weren’t standardized or integrated — and they achieved limited results.
After comparing LeanDNA with traditional Bl solutions and internal development, the company selected LeanDNA and quickly implemented the LeanDNA solution and standard work within their organization. Our teams worked side-by-side to ensure that the company’s teams were successful in deploying the solution and achieving positive results. The LeanDNA out-of-the-box tools and built-in best practices gave the company’s internal supply chain resources more time to focus on process improvements and drive operational efficiency so they could achieve their mission of becoming a world class manufacturer.
“With LeanDNA, we can translate information into action – and know what actions will have the greatest impact on cash flow.” — VP of Supply Chain
The aerospace industry is often plagued by constantly changing customer requirements which flow down through the supply chain. These supply chain organizations are tasked with keeping up with these changes and are usually using Excel to manage their day-to-day workflow. Not only do they need to manage excess inventory and ensure material arrives on time to support production, they need to constantly communicate with suppliers and prepare reports and presentations for upper management.
The LeanDNA Solution
This company deployed LeanDNA to one of their sites in late 2014. Within a matter of days, they were able to visualize data feeds from SAP via pre-built dashboards designed around industry best practices. The result was that the site could immediately see the health of their supply chain and possible opportunities for inventory improvements. By cutting through the clutter of the ERP system, LeanDNA provided a direct line of sight into the levers that would have the greatest impact on inventory.
Purchased inventory at one site went from $75M+ in 2015, to $62.3M by the end of 2015, to $52 M by Q2 2016. Globally, the company reduced inventory by over $20M in a matter of 3 months. Once the first site was up and experiencing great outcomes, the company decided to move to six additional sites in early 2015 and eventually expanded to their entire 60+ global network of factories.