Bättra’s work with HHS SSC has proven our team’s ability to embrace new challenges and implement measurable improvements, leveraging our real-world supply chain and manufacturing experience. Our team started with an evaluation of the organization’s customer service levels to determine how well its supply chain processes were performing. We conducted a lean Kaizen event early in the period of performance during Week 3 of the engagement, focusing on a single customer with a large number of late order lines. The Kaizen event revealed two (2) primary root causes – Inadequate stock levels and procurement delays. Our team implemented the recommendations from the Kaizen out-brief to develop 1) an inventory replenishment policy, 2) an analytical tool to implement the policy, and 3) an analytical tool to manage the manual, email-based Purchase Request (PR) process.
Bättra tested the new inventory replenishment policy using a ProModel® simulation to evaluate prospective performance under three (3) different replenishment policies. These policies were based on a demand segmentation of the organization’s active items along the dimensions of annual demand frequency and the coefficient of variation (COV) in accordance with lean best practices.
Bättra then developed and implemented a database tool to automate much of the analysis required to generate PRs and track customer service levels against the objectives achieved in the simulation by each replenishment method. In addition, Bättra developed a supply chain metrics dashboard with supporting data sources and analytics to measure supplier on-time delivery/ average days late, inventory value/ turns, customer order fill rate by replenishment method, and procurement late award rate/ average days late.