SIOP Implementation

$450M Food Manufacturer

Background

  • The company manufactures and distributes beans, hominy, sauces, tortillas, taco shells, and chips for major retailers, brands, and food service customers

Contributions

  • Developed automated OTIF and Fill Rate reports to analyze service levels by business segment, location, and customer
  • Identified root causes and formed strategies to mitigate future issues
  • Built a forecasting process and statistical model to analyze historical demand and project forecast demand at the facility, customer, and item levels
  • Created an Inventory Model and Days Of Supply report to manage inventory levels from multiple angles – overall inventory levels and days of supply stated in terms of historical and forecast demand

Results

  • OTIF and Fill Rates climbed to 97% and 98%, respectively, by the end of the engagement (45% improvement)
  • Forecast accuracy increased to 51% after the first time implementing the new process and statistical model (25% improvement)
  • Strategically redistributed inventory mix from Work In Process to Finished Goods to improve customer service
  • Identified > $500K of excess inventory to liquidate to generate cash
  • Helped the company hire a Director of SIOP
  • Achieved >50% reduction in manual data analysis