OPSM

Streamlined supply chain

Following the acquisition of Budget Eyewear and Laubman&Pank, OPSM (Australia’s largest retailer and manufacturer of optical needs) was faced with one product offering and three vastly different supply chains. Management undertook to devise a uniform supply chain strategy which would offer significant cost savings and improve the overall performance of each brand.

According to OPSM, they were seeking specialist consultants that could combine high-level strategic skills, supply chain qualifications and change management expertise.

SMT Consulting, a supply chain management and consulting firm, was retained to conduct a comprehensive review of the supply chain operations of each group. A team of specialist consultants were assigned to evaluate the existing processes of all three businesses; travel to each branch and factory (both domestically and throughout Asia); and ultimately devise a supply chain strategy that incorporated best of breed processes and technology that would deliver the desired financial benefits they were seeking from the mergers.

The Solution – Theory of Constraints.

The key objectives for these supply chain reforms were to reduce the considerable operating costs that the three groups were incurring and to enable each brand to make an unprecedented offer to customers in terms of turn-around time on product delivery.

After an extensive review of operations, SMT identified several key areas where reform could deliver supply chain cost and performance improvements, including:

  • Lens manufacturing
  • Edging and fitting
  • Supply chain scheduling

The bottom line

OPSM now boasts lean supply chain processes, first class manufacturing facilities with growing levels of throughput, vastly improved levels of customer service, reduced levels of inventory and millions of dollars in cost savings each year.

According to OPSM each phase of the project was a success – cost savings were realised immediately, manufacturing is now scheduled to meet customer requirements and stores are operating efficiently, enabling them to focus on increasing sales.

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