Made to Stock Manufacturing
This organization is a make-to-stock (MTS) business of over 400 employees and over $100 million in revenue. Although profitable, their growth rate over the previous three years had been substantial with many new employees in both production and the office. The business is highly regulated (Food & Drug audit requirements in two countries) which requires material lot traceability.
You might think there were stock shortages causing the shipping issue. Less than one percentage of the missed shipments was due to stock outs or other operational issues. The major issue was the “sales order on credit hold” process which was paper-based (estimated 6,000 sheets of paper annually) which took an average of 13.2 business hours to clear (customer expects shipments the next day).
Customers service representatives were increasingly raising concern that shipments were not going out on time and customers were calling to complain.
Inventory movement tags, when entered into the ERP system, would often produce error messages which would need to be resolved in order to complete the transactions.
A business management process that integrated to their ERP system.
The organization invested in RFID technology from receiving through the warehouse and production and into shipping.