CASE STUDY SS-PC-IL-01 | Interim Leadership

Bridging the Gap: Interim Leadership with Business Intelligence Tools in CPG Manufacturing

Interim Leadership Excellence: Elevating Service Levels and Reducing Excess Inventory

CPG Personal Care | Interim Leadership

90%+

Customer Service Level Maintained During Stabilization

Real-Time

Inventory & Demand Visibility Enabled via BI Tools

1 Leader

Permanent Operations Leadership Secured for Continuity

Challenge

Restoring Operational Alignment Between Manufacturing and Supply Chain

Leadership Gap: Need for a Sr. VP of Operations to bridge the manufacturing and supply chain disconnect.
Inventory Management: Inaccurate data for finished and raw inventories leading to production inefficiencies.
Production Scheduling: Manufacturing schedules created without necessary inventory components, causing delays.
Service Levels: Low service levels (in the low 90%) resulting in lost sales and decreased retailer satisfaction.
Absence of reliable, data-driven approaches, leading to excessive and inaccurate inventory records.

Implementing BI Tools and Operational Strategies for Rapid Stabilization

Demand Categorization: Applied Business Intelligence tools to categorize demand, addressing inventory inaccuracies.
Inventory Management: Partially implemented cycle counting focused on components needed in the demand profile.
Outsourcing Analysis: Investigated outsourcing opportunities to isolate and address critical issues in the primary manufacturing facility.
ERP System Optimization: Defined the capabilities of the poorly implemented ERP system and established reasonable performance expectations.
Leadership Recruitment: Sought a permanent Sr. VP of Manufacturing to ensure sustained improvements and leadership continuity.

Providing Stability and Tools for Long-Term Success

Leadership Transition: Permanent leader replaced interim leadership, equipped with a clear action plan for success.
Strategic Framework: Developed MRP requirements, corrected inventory mix, and created an organization chart supporting the strategy.
Capacity Management: Provided options to manage capacity when customer demand outpaced production capabilities.
Enhanced Planning Tools: Left manufacturing planning with dashboards for real-time insights, inventory management, and demand challenges.
Sustained Service Levels: Maintained customer service levels while optimizing inventory mix and implementing an effective cycle count strategy.