A UK manufacturer of household products for the major UK Retail Market Outlets decided to outsource all internal production activities and focus the business on procurement, storage and distribution.

The company operated an MRP system supported by traditional procurement and stocking policies.

A breakdown of daily operational disciplines and forecasting accuracy led to an imbalance in stock with some SKU's overstocked while others created unfilled orders.

The supply chain stretched across three continents and included China.

The departure of the Supply Chain Manager had left the organisation in urgent need of a replacement and immediate support with their logistics operations.

The 16-week mission:

> Review Sales and Operations Planning
> Complete a MRP Systems Review
> Set up systems and control procedures to provide accurate live data
> Implement Standard Operating Procedures
> Initiate price control mechanics and review od all contracts
> Conduct departmental team assessment
> Conduct full procedural audit and risk management assessment
> Establish and implement Import / Export Control procedures

The simplified problem was a breakdown in Sales & Operations Planning, materials management due to inaccurate information and forecasts. This had led to an MRP System either driving up stock or creating late deliveries by being late in placing orders. The solution an improved planning regime focussed on demand led stocking policies.

The Interim Manager conducted a short review and generated a 26-point Action Plan to address the short-term weaknesses coupled with a vision and strategy to construct the medium term. Daily and weekly housekeeping routines for the MRP System were urgently introduced, with a visual office that displayed performance matched against the departmental KPI's. Improvements in performance were quickly seen with the Supply Chain office maxim becoming "Abnormalities seen at a glance".

In the medium term the Interim Manager laid the foundation for a supply chain by producing a full documentation set including Supply Chain Plan, Supplier Manual, Supplier Assessment Surveys, ITP, Business Agreement, Team Briefing Document to set up Consignment stocks.

The success of the supply chain partnerships being built on individual win-win relationships. The philosophy "As long as you deliver a quality product on time, within a regime that keeps a downward pressure on cost, all the business is yours". The Challenge was not a technical but Cultural. Building successful partnerships required mutual trust, shared experience, shared information, and shared cost.

The key was a learning process that emphasized, "Through collaboration we can create speed and wins for both partners". Instead of removing the work from customer to the supplier, the work was removed. Using this philosophy and documentation, successful negotiations were conducted with all suppliers, including the Chinese, to provide a Pipeline stocking policy based on the clients' receipt of orders communicated directly to the Suppliers.

In the new environment the total reliance on MRP accuracy is removed, while forecasting is required only for long-term capacity planning. This system allows forecast variations of 20, 30 or even 40% without effecting immediate deliveries.

At the end of the assignment, the MD commented that the Interim Manager promised to leave the company better off than when he arrived. This he delivered and much more, especially passing on valuable expertise to other members of staff, providing an invigorated Supply Chain to create a profitable future.