Tag: supply chain

Manufacturing Inventory Reduction: Achieved Elusive Inventory Management Target Implemented global best practices; achieved corporate inventory target for the first time in 7 years.

Manufacturing Inventory Reduction
Achieved Elusive Inventory Management Target

To improve cash flow while mitigating risk, many companies are reevaluating their approach to inventory management. Excess materials and persistent shortages remain despite the overall recovery from pandemic constraints. When times were tough, gaps in inventory management discipline magnified the impact of constrained supply chains. As conditions improve, discipline gaps still leave...
Nearshoring to Mexico Nearshoring: ¡Vamos a México! Driven by federal incentives, geopolitical risk, and pandemic aftershocks, restoring and nearshoring continue apace. [Screenshots of various article titles about restoring and México] Kormac's senior operational experts have diverse experience designing, launching, and operating manufacturing facilities south of the border

Nearshoring to Mexico
Nearshoring: ¡Vamos a México!

Driven by federal incentives, geopolitical risk and pandemic aftershocks, reshoring and nearshoring continue apace. For manufacturers compressing supply chains, nearshoring to our southern neighbor provides a comfortable, cost-effective option. Companies of all size are feeling the pull – even 88% of small and medium sized businesses are “reshuffling their supply...
Inventory Intelligence Inventory Reduction Precision Supply chain disruptions have left many organizations holding excessive inventory. Guided by precise, item-level insights, we're helping clients align, forecast, and make strategic decisions to optimize demand and supply. Typical Results: - 10%-90% cost reduction - 20%-30% inventory reduction - 25%-60% space reduction

Inventory Intelligence
Inventory Reduction Precision

As supply chain disruptions ease, many organizations are left holding excessive inventory accumulated during the turmoil. Our Inventory Intelligence Surgical Strikes provide a path out of the wilderness toward optimized inventory and availability. While inventory executives can typically slice and dice data to reveal relative performance and volumes, they often...
Manufacturing Facilities Optimization: Detailed Plant Scenarios and Modeling - Reduced manpoower requirements by 33%, cut warehouse overtime, and optimized off-site storage locations

Manufacturing Facilities Optimization: Detailed Plant Scenarios and Modeling
Reduced manpower requirements by 33%, cut warehouse overtime, and optimized off-site storage locations

As US manufacturers consider reshoring, they’re often prompted to reevaluate the configuration of existing facilities, including storage. We help such leaders develop detailed plant scenarios and models to guide recommendations on combining, consolidating, redesigning, and/or automating plants, including estimated costs and savings for each scenario. To follow is a chemical...
Cost Management Rebalancing the margin tug-of-war Does your organization struggle to achieve financial goals in an increasingly volatile marketplace? [iconography of two teams playing tug of war, with the target margin in the middle. Text above the image reads "Kormac Rebalancing"] Cost Pressures: Labor, Materials, Logistics, Real estate, Technolgy Market Pressures: Pricing, service delivery, quality, lead time, social responsibility Kormac's Surgival Strike Methodology™ delivers the agility you need to meet your financial objectivers.

Cost Management
Rebalancing the margin tug-of-war

As the labor and supply cost rollercoaster continues, we are working with several clients to identify new management levers. Among them: Increasing the frequency of cost reviews to ensure faster customer price adjustments and/or tying customer pricing to component market indices Executing Value Analysis and Value Engineering efforts to drive...
Healthcare Services Maximizing On-Time Delivery "Working with Kormac, you know you can expect a small, focus-driven team that will deliver results." - Vice President, Healthcare Services Company Sales, Inventory & Operations Planning Overhaul Achieved 100% on-time delivery and reduced SKU inventory by half

Healthcare Services
Maximizing On-Time Delivery

Customer delight begins with honoring our commitments. With that truth in mind, a leading healthcare services company turned to Kormac for help in improving its on-time delivery to customers. From forecasting and purchasing to inventory management and product delivery, our client sought to deliver an outstanding experience for its pharmaceutical...
Medical Device Supply Chain Complexity & Agility - Addressed $11.1MM+ overage in raw material components and $5.6MM+ overage in finished goods inventory

Medical Device: Supply Chain Complexity & Agility
Addressed $11.1 MM+ overage in raw material components and $5.6 MM+ overage in finished goods inventory

Supply chains have proven a compelling scapegoat, but many of the recent challenges reveal underlying dysfunction that preceded the pandemic. For one medical device manufacturer, supply chain (SC) complexity was creating costly overages in materials and finished inventory. Their build-to-order SC process optimized part and component costs, but did so...
Supply/Demand Planning SIOP: Advanced Planning Delivers Agility and Responsiveness Risk Avoidance & Opportunity Conversion Decisions Months 0-3: Frozen or Fixed Horizon; Response is typically overtime or expecting. Variability +/- 3% Months 3-6: Capacity Adjust Horizon; Labor and supply chain alignment. Variability +/- 8% Months 6-9: Project Horizon; Professionals, complex Kaizen solutions, CAPEX. Variability +/- 12% Months 9-12: Strategic Horizon; Footprint rationalization, CAPEX, campaigns. Variability +/- 15%

Supply / Demand Planning
SIOP: Advanced Planning Delivers Agility and Responsiveness

Is your organization suffering from SIOP myopia? In our client assessments, we find that 90% of supply/demand discussion focuses on the near-term, neglecting longer term risks and opportunities. Optimized SIOP extends the horizon of forecast accuracy to increase agility and avoid looming constraints. Kormac’s supply chain convergence approach powers an...
Global Manufacturing Supplier Visibility and Planning - Reduced airfreight costs by 43% ($47MM) with increased component visibility

Global Manufacturing: Supplier Visibility and Planning
Reduced airfreight costs by 43% ($47 MM) with increased component visibility

Continuing our discussion of current supply shortages and bottlenecks, Kormac excels at helping clients cultivate supply visibility and reliability amidst challenging conditions. For example, a global manufacturer of vehicle seats sought to maintain 100% OTIF (On-Time and In-Full order fulfillment rate) but suffered from inadequate visibility to component suppliers’ capacity...