Outsourced Manufacturing: Improving Manufacturing From Every Angle
Situation
Our client, a manufacturing company based in upstate New York, faced significant challenges in their existing manufacturing location. Long lead times and rapid material turnover posed operational bottlenecks, hindering efficiency and affecting their ability to meet customer demands promptly.
Additionally, their shipping process encountered delays, especially in the final leg of the distribution, impacting overall customer satisfaction.
Action
Strategic Location Advantage: Group O, strategically located in Milan, IL, played a pivotal role in transforming the client's supply chain dynamics. The central location enabled Group O to drastically reduce the turnaround time from 7 days to an impressive 2 to 3 days.
In-House Manufacturing and Inventory Management: Leveraging in-house manufacturing capabilities, Group O facilitated a more flexible approach to holding materials. This allowed the client to adapt to varying demand patterns and optimize inventory management, ultimately reducing lead times.
Cost-Effective Labor and Global Shipping Expertise: Group O brought in cost-effective labor solutions, ensuring efficient production without compromising on quality. Additionally, the company's expertise in international shipping streamlined the process of receiving products from countries like Japan, Korea, and the Netherlands, while also efficiently shipping to locations in Florida, California, and worldwide.
Comprehensive Warehousing and Distribution: Group O took charge of warehousing, inventory management, and distribution, relieving the client from the burden of the last-mile shipping. This allowed the client to focus on product excellence while Group O handled the complexities of logistics.
Agile Two-Day Shipping Turn Around: Our client was facing a seven day turn around for shipping. We were able to improve this to a two-day turn around. To enhance flexibility, Group O can perform same-day shipping if needed, ensuring an agile response to client needs. This approach added a layer of responsiveness to the supply chain, meeting dynamic requirements promptly.
Custom Manufacturing and Quality Control: Group O's custom manufacturing capabilities, particularly the use of specialized machines, brought a unique and precise element to the client's products. This resulted in the creation of material pails with minimal loss, contributing to cost-efficiency and product quality.
Partnership and Daily Interaction: Embracing a collaborative approach, Group O positioned itself as a steward of the client's assets. Daily interactions and constant communication established a strong partnership, ensuring that Group O aligned its services with the evolving needs of the client.
Results
Operational Efficiency: Group O's interventions led to a significant reduction in lead times, enhancing the overall operational efficiency of the client's manufacturing processes.
Increased Sales and Permanent Second Shift: With Group O's support, the client secured additional contracts and experienced heightened demand. The successful implementation of a second shift, initially to meet peak domestic demand, eventually became a permanent feature, further boosting production capacity.
Global Logistics Excellence: Group O's proficiency in global shipping resulted in a smoother and quicker international product flow, positively impacting the client's global market presence.
Inventory Management Success: Maintaining $10 million worth of inventory with an impressive .002% variance demonstrates Group O's meticulous inventory management, ensuring product availability and minimizing discrepancies.
Customer Satisfaction: Out of 7,000 shipments in the last 10 months, only 35 generated customer issues, attesting to the high level of customer satisfaction achieved through Group O's streamlined processes and commitment to quality.
Group O's comprehensive solutions not only addressed the initial challenges faced by the client but also propelled them towards operational excellence, increased sales, and enhanced customer satisfaction, marking a successful collaboration and a mutually beneficial partnership.
