Transforming traditional forecasting techniques and optimizing the supply chain through Lean principles and Lean tools enables industry-leading innovations and customer service improvements – in other words, an enormous competitive edge.
Project Summary
Lean Horizons partnered with Acuity Brands, a $2 billion manufacturer of lighting equipment and specialty products, to optimize service and profits through a Lean Supply Chain. By enabling level scheduling, supported by best-in-class S&OP, the client was able to align all functional areas and trading partners and build finished goods according to consumption, not traditional forecasts. Significant performance improvements freed cash for investment in innovation. The following are representative results:
| Metric | Improvement |
|---|---|
| Finished Goods Inventory | – 19% |
| Floor Overtime | – 10% |
| LIFR | + 12% |
| Product Margin | + 17% |
| Net Profit Margin | + 24% |
| Additional Revenue for Division | + $8,000,000 |