RaPP Case Studies : Company 2


	Please enter keywords and click search

Company 2
Case client 2 is the leading manufacturer of ‘V’ ring, band and pressed clamps. They have a turnover of £5m and over 50% of production is exported. Please click on one of the following subjects to view more information:

	The Issue
	The Solution
	Benefits

The Issue

Case client 2 was facing price increase requests for core raw materials and exposure to single sources for other critical components. They were also concerned about their ability to support customer deliveries due to the difficulty of obtaining long lead items and the lack of reliable stock control.

The Solution

	Rapp identified:
		Savings opportunities of £120k which would raise profitability by 46%
		A project to develop the demand management process.
		A project to improve the link between customer sales information and purchasing actions. The ‘Purchase for the Business Plan’ programme to drive in a structured purchasing plan covering savings, stock turns, supplier performance,

Benefits

	A ‘Web based tender’ process was used to establish new supply contracts for steel, achieving the targeted saving. The process took 12 weeks to complete and the new contracts are formalised under Service Level Agreements written within the tender process.
	The MRP system was launched after a structured review of items relevant for this approach. A long lead item and low value item strategy was also implemented to resolve stock availability issues without creating excess stock.
	A new process discipline was developed and implemented to review customer orders and schedules on a daily basis to allow for early actions and planning. This has improved Customer satisfaction significantly.
	The purchasing function now has a structured plan, underpinned by Key Performance Indicators (KPI’s). The cyclical approach to review and action ensures that all projects and targets are reviewed.


Home \| Contact \| Sitemap \| Search \| Glossary of Terms \| © 2003-2007 SMMT - Designed and hosted by The Strategies Group Plc