Client Description

Manufacturer of Asia-sourced hard goods for Sporting Goods Retailers across the globe

Background

The client desired an improvement in on-time fill rates, along with lower inventory working capital and reduced obsolete stock. Achieving these goals required breaking some of the ‘rules’ and redesigning the global supply chain.

Objectives

A Supply Chain design that leverages the Asian locations to improve velocity in the distribution system, increase direct-to-customer capability, and reduce the percentage of product that was produced-to-forecast versus produced-to-order.

TPG Approach

TPG performed an intensive analysis of customer ordering patterns to identify the potential feasibility of an Asian consolidation/distribution center. TPG led a cross-functional team to dimension the impacts on customer service, inventory and costs for a variety of TPG generated options. Impacts to customer acceptance and satisfaction were identified to leverage the project as a business-building opportunity for strategic customers.

Impact/Results

The TPG strategy identified the potential to reduce distribution costs by 10% or $1MM per year while reducing the inventory produced at risk (production prior to order) for approx. 30% of annual shipments.