Orr & Boss conducted a worldwide, cooperative benchmarking study related to manufacturing and supply chain issues for the market leaders of a category of products sold into the automotive industry. The suppliers that participated in the benchmarking assignment were each interested in understanding how their costs and profits compared to the industry average as well as the best-in-class performers. Specific aspects of the companies' operations were benchmarked for facilities located in North America, Latin America, Western Europe and regions within Asia Pacific (primarily China).
The benchmarking exercise revealed that for one industry leader, its key competitors had (1) significantly lower costs related to manufacturing and warehousing operations and (2) considerably better operating profits.
- Orr & Boss was retained to conduct an in-depth analysis of the Company's operations to identify the root causes of the poor performing operation, quantify the savings possible through improved operations, and develop an implementation plan for corrective actions.
- The in-depth analysis, which factored in comparisons with best practices and opportunities for lean manufacturing techniques, identified total annual savings of $6 million dollars.
- A detailed actions plan was developed to obtain those savings.
- Orr & Boss led the implementation phase of the assignment for our client. We ended up exceeding the annual savings estimate by 20% through implementing lean manufacturing techniques, reengineering inefficient business processes, rationalizing products and raw materials, and reducing waste streams.