Parbury Building Products
Best Supply Chain Project Award from SAP
Parbury acquired Furniture Hardware Supplies (FHS) to extend its range of building products and to develop a one-stop supply capability within its market. The two entities were consolidated, redundant warehouses and processes in the supply chain were identified and eliminated, and the information systems were merged. Parbury FHS performed a rigorous market analysis and developed a multidimensional typology of supply and demand patterns, partly based on the Supply Chain Operations Reference (SCOR) model. The company also addressed its manufacturing constraints to improve manufacturing throughput, and it integrated its supply chain planning tools with its execution systems.
The key enablers of this approach were:
- Strong top-management commitment and involvement throughout the project
- Active change management
- Software solutions enabling all these changes: mySAP™ Supply Chain Management (mySAP™ SCM) software
Results Achieved over the Period September 2002 to February 2003
- Inventory accuracy advanced from 92% to more than 98%.
- Distribution sites were reduced from 18 to 12, and central locations, from three to one.
- The inventory value was reduced from $A 27 million to $A 18 million.
- Stock availability increased from 80% to 90% and overall delivery in full on time (DIFOT) is now at 91%.
- Manufacturing throughput increased by 20%.
- Production lead time was reduced by up to 40%.
- Customer satisfaction increased.
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