While each organization had its own distinct characteristics and goals, one of the key metrices that almost all organizations work towards achieving is On-Time Performance, a measure of reliability of a process or an organization.
To achieve a high on-time performance, the first and probably the most important step is to be able to give customers the right delivery lead time. The right delivery lead time for product is defined either by the customers or by the company based on internal constraints.
My role
Established the process for creating SOPs related to supply chain optimization and strategies
Introducing simple model of ABC analysis in inventory planning to assist in making the MTO/MTS decision dynamically.
Developed a new ERP process from setting up the sales forecast format, running MPS, creating MRP...etc. which leads to work order & purchase order automation.
Managing and collaborating cross-functional teams such as sales, logistics, procurement, and production team to execute production planning effectively.
Before
Before I take over the role of operations manager, the supply chain strategy was tended to be a mix of MTO (Make-to-Order) and MTS (Make-to-Stock) processes just like most industrials and manufacturing based organizations.
The executive board constantly grappled with the problem of deciding which items or models to service from stock and which products to offer but produce only against orders. Should all fast movers be MTS and slow movers be MTO? Is MTS or MTO dependant on competitors? If an item once defined as MTS remain MTS forever?
After
Reduced inventory cost, capital cost, cost of damages/obsolescence. Frees up warehouse space, optimizes working capital and thus, reduces the overall cost to company.
Better capacity utilization and reduced production losses – with lesser instances of procurement expediting expenses.
Improves Sales through improved stock/product availability.
Improved On-Time Delivery performance by setting up the right amount of safety stock.
Automation through MRP to add new work order/purchase order directly from ERP system