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Created Efficient Supply Chain Structure for Robertet Flavors

DP&C created an efficient supply chain structure by improving customer service, reducing dormant inventory, increasing material yield, and reducing operating expenses.

Robertet is a global creator and manufacturer of flavors and fragrances.

The Challenge

  • Improve customer service now, and maintain high levels as the business grows
  • Reduce operating and dormant inventory relative to sales
  • Increase material yield
  • Reduce operating expenses
  • Enhance information systems to be long-term scalable and supportable

The Solution

  • Increased throughput velocity
    • QA improvements
    • Mitigation of redundant inputs and paperwork
  • Inventory made more accurate at item, lot and location level
    • Cycle counting application and procedure implemented
    • FIFO rules installed
    • Better processes, methodology and training put in place
  • Automatic capture and identification of variances based on lot number to reduce rate of loss
    • Bar code scanning
    • Cycle counting
  • Shop floor automation helped create greater visibility and chain of responsibility
  • Replaced current application with new ERP and developed implementation plan

The Results

  • Customer service improved by cutting time between customer order and delivery from 11.5 days to 7.2 days
  • 25% increase in SKU count while reducing operating expenses as % of sales by 11.4% ($800,000)
  • Increased cash flow by $800,000 through a onetime reduction in on hand inventory while still achieving a 30% increase in sales
  • Decreased material waste led to a $600,000/year benefit compared to the base year