MinutemanSuccess Story

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Minuteman International was established in 1951 and owns and produces their own floor sweepers and scrubbers, such as the Powerbass are manufactured out of their Pingree Grove, IL, facility. Minuteman International is a part of the Hako Group which is located in Germany. The Hako Group services customers worldwide from 60 countries. Their automotive manufacturing business focuses on a ride on scrubbers and sweepers which are built on production lines that have the capability to adapt to customer requirements.

CHALLENGES

• Inventory growthž
• Cash liquidity
• žExpediting part orders
• žIncrease in inbound air freight
• žDamaging bottom line performance
• Even with the growth inventory still did not have the right parts in stock

SOLUTIONS

• Inventory optimization using standard SAP tools to reduce average inventory and maintain service levels
• Production planning, Capacity Planning and scheduling in SAP using standard ECC
• žSupport needed for effective on-time delivery of supply
• Reducing MRP exception messages to drive balance into the supply chain
• Supporting and supplying the tools to encourage a human effort to balance the supply chain
• žSustaining success through Process Aligned Team P.A.T

BENEFITS

• Number of materials with negative days of supply dropped by 89%. This indicates an optimal customer service team.
• žMRP exception messages decreased by 66%.
• Current stock value reduced by 32%. This indicates a sustainable inventory reduction.
• žIncrease profitability by:
• One-time pickup in freight savings
  • Reduction in inventory carry cost
  • Reduced expedite ordering
• Increase in customer satisfaction
• • Improved delivery time
  • Knowledge of customer backorder issues