Improved service and cut costs with Category Management
Situation:
A global provider of fasteners and engineered components asked Kormac to address inefficiencies across its supply chain, which were causing margin erosion and lost sales.
Actions:
- Mapped supply chain systems and logistics processes
- Developed and implemented procurement sourcing tools and category management strategies
- Established flexible, tailored replenishment model based on historical use, classification, and lead times
- Integrated warehouse Hub/Spoke system, reducing total inventory, stockouts, and procurement cycles
- Implemented MRP, automating Sales/PO processing
- Developed client staff through interim leadership
Results: Established resilient supply chain processes supporting strategic market growth. Achieved 20% reduction in annualized material costs (across 2,700+ parts), 65% reduction in past-due P.O. value, 40% reduction in sales backlog, and 18% reduction in working capital inventory.
