| Case 4: A midsize chemicals company primarily involved in exports business
Illustrative Scenario: Supply to some large companies in Latin Americ
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Before |
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After Reliability Implementation
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- Lead time of eight to ten weeks
- Actual time was anywhere between 8 to 16 weeks
- Due date performance less than 50%
- The customer having 3 to 4 sources, the share of Indian company was in the range of 15 to 33% share of business
- Three months of inventory at customers end
- Even after so many suppliers, emergency calls because of stock-outs
- Conference calls twice every week for discussing supply status (Sales people in India were quite frustrated with late night conference calls
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- Lead time promise of ten weeks
- Actual time maintained at 9 to 10 weeks, without much fluctuations
- Due date performance close to 100%
- The customer now limited to only two suppliers, the share of Indian company went up to a range of 75 to 90% of Share
- The customer started maintaining only two weeks inventory
- No more emergency calls in a span of 6 months
- Conference calls only once a month
- The Indian company got a premium of 10% over its key competitor even in cut-throat competition
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