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How we helped
A major global components manufacturer had high levels of parts inventory and an overhang of past-due sales orders it was unable to fulfill. Shortages of some key parts were holding up deliveries of full bills-of-materials, bloating inventory, and causing downtime of critical manufacturing lines, as well as cash constraints.
AlixPartners was brought in initially to resolve critical parts shortages to unlock sales, but we realized quickly that underlying issues around data availability and sales and operations planning were the root causes of current performance issues.
Our team set up key sales and operations process (S&OP) initiatives to resolve the underlying process issues, establishing a project-management structure that worked with suppliers to source key components. We resolved the entire $20 million backlog of past-due sales, and developed a digital control tower with automated data feeds to improve visibility and help the client’s planning and purchasing teams solve challenges in real-time.
Training was rolled out across the firm to expedite adoption. Having found the missing component in its broader sourcing and sales structures, the client was on track to capitalize on opportunities.
$80mn
in enabled sales within 13 weeks