Cssi-Cosulting
Strategic Transportation Procurement
Strategic Transportation Sourcing
Client Situation:
A $1.8B industry leading industrial products manufacturer was under intense competitive pressures to regain and continue to grow market share in the Aftermarket business segment
 
CSSI Role:
CSSI consultants were engaged to understand and advise on four key questions: 1) what is the actual amount of inventory used today for Aftermarket parts, 2) How much inventory can be removed (SLOB), 3) what is the “right” amount of inventory to have and of what parts? And 4) how many incremental sales can this deliver?
 
Approach:
Leveraging a multi-year history of historic and lost sales data, the team sought to define the current inventory and supply chain parameters within the existing business strategy against industry best practices; calculate excess or needed inventory by SKU, identify and prioritize the key drivers of excess inventory, and finally define a program to "Right-Size" inventory and increase customer service.
 
Results:
After completing a 14 week project, the team defined the following:
– 3,555 parts worth $12M to be removed from inventory

– Additional safety stock was required for 17K parts requiring an investment of $5M - $7M

– Leading inventory algorithms, process review cycles and best practices were implemented across business units

– New inventory and buffer strategies were implemented, identifying the opportunity for the company to gain sales in excess of $100M

Supply Chain Optimization

Remove excess inventory, streamline distribution networks, and align key processes and strategies across your global business network.
Freight OptimizationThe global supply chain for many has been strained like no other time in recent history. Internal clients and external customers need the supply chain to be the “shock-absorber” for global uncertainty. During these tough economic times, it is equally as challenging to predict customer demand, as it is to truly understand your supplier’s capabilities –are they going to be around tomorrow? As a result, inventories are facing excessive builds – or embarrassing stock-outs. In these challenging times, making errors in your supply chain can cost you a customer for life. CSSI can help you across many areas of your supply chain to address issues such as:
  • Rising costs of materials and services
  • Uncertain transportation costs
  • Imperfect inventory levels and lead times
  • Mis-Aligned or frequently changing distribution networks
  • Differing opinions on outsourcing and ”near-sourcing” solutions
  • Unclear sustainability and “green Initiatives”

Our consultants help you address these and other critical supply chain needs.

 
How we can help you:
Our consultants have experience helping leading companies across the globe improve a number of supply chain activities:

Plan

  • Supply Chain Strategy
  • Channel Strategies
  • Manufacturing Strategy
  • Sales & Operations Planning

Source

  • Strategic Sourcing & Procurement
  • Supplier Relationship Management
  • Global Trade Management
  • Supplier Collaboration

Make

  • Manufacturing & Production Planning
  • Supply/Demand Management
  • Inventory Optimization

Deliver

  • Network Design/Optimization
  • Network Consolidation
  • Transportation Optimization
  • Warehouse Design/Optimization
  • 3PL Outsourcing
  • Private Fleet Optimization