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Imoka-style SCM profit improvement consulting

Exploring factors for revenue improvement through analysis of the relationship between inventory and revenue! Proposing a grand design for the management system.

Our company proposes a grand design for management systems before implementing or updating IT systems such as ERP for business owners considering these changes. We diagnose the setting of the scope of the supply chain that will become a profit center, as well as analyze the inventory time at bottleneck points (inventory locations). From the analysis of the relationship between inventory and revenue, we explore factors for revenue improvement and suggest ways to enhance the synchronization levels of order, material input, production, and shipping. [Diagnosis] ■ Setting the scope of the supply chain that will become a profit center ■ Analysis of the current revenue structure of the profit center ■ Analysis of inventory time at bottleneck points (inventory locations) *For more details, please refer to the PDF document or feel free to contact us.

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[Consulting Case] Support for Production Innovation Project at a Major Automotive Parts Manufacturer

Results from production innovation focusing not only on cost reduction but also on inventory! Introducing consulting case studies.

The production management and IT departments at headquarters are attempting to implement external ERP and strategic methods in a top-down manner, while the on-site staff feel a sense of discomfort. There has been a growing necessity for a common understanding and company-wide production innovation. In response, we conducted a seminar on supply chain management, which is a methodology for improving profit structure, for the internal project members. The project meetings included not only the factory side but also the production management department, logistics, sales, accounting, and IT departments from headquarters, where we identified current issues and proposed a structural overview of the problems. We realized that reducing inventory through small-lot production generates profits for the factory, leading us to reassess KPIs and transition to smaller lot size production. **Case Study** ■ Solutions - Conduct a seminar on supply chain management. - Involve not only the factory side but also the production management department, logistics, sales, accounting, and IT departments from headquarters to identify current issues and propose a structural overview of the problems. - Reassess KPIs and transition to smaller lot size production. ■ Effects - Performance improves not only through cost reduction but also by focusing on inventory in production. *For more details, please refer to the PDF document or feel free to contact us.*

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[Consulting Case] Market Expansion Strategy Support for Beverage and Food Manufacturers

Expanding the market through supply and demand management of new products over standard items! Introducing consulting case studies.

We received a consulting request from a major domestic beverage and food manufacturer in China. The management challenges in the beverage and food industry are significant demand fluctuations, with excess inventory and stockouts being persistent themes. Excess inventory must be discarded once it passes its expiration date, while insufficient inventory leads to lost sales opportunities, impacting overall performance. Therefore, we analyzed the profit structures and inventory fluctuations of each segment, from factories to logistics warehouses, wholesalers, and retailers, assuming that each operates as a profit center, and identified the issues. We proposed changing the management system, implementing mixed deliveries of small lots with high frequency for each SKU, and adjusting factory production cycles from monthly to shorter cycles of half-month or weekly. We gained their agreement through an Excel simulation demonstrating how much inventory could be reduced and stockouts eliminated. [Effects] - By revising promotions that cause sudden increases and decreases in demand, we achieved demand leveling and production/shipping leveling, resulting in successful market expansion for new products through fresh rotation strategies. *For more details, please refer to the PDF document or feel free to contact us.

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[Consulting Case] Profit Structure Improvement Support for Electronic Component Manufacturer

Improving from a red font constitution to a high-profit constitution! Introducing consulting case studies.

The electronic components manufacturer, which has an extremely wide range of items such as semiconductors and PCBs, has processes that exceed 100, with complexities including returns to upstream processes and repetitions. Due to the inability to secure profits firmly with traditional cost management and inventory management theories, there have been inquiries about what methods can be used to resolve these issues by reading our publications. The first step taken was to wear work clothes and observe the flow of materials according to the work instructions, monitoring the movements of equipment and personnel over the course of a week. The root cause was found in the management system that aimed to increase output and reduce costs for each process. The solution was achieved by shifting the KPI (Key Performance Indicator) from cost to time (inventory holding). [Case Study] ■ Solution - Shifted KPI (Key Performance Indicator) from cost to time (inventory holding) ■ Effect - Customer satisfaction shifted from low prices to immediate delivery, improving from a deficit-prone structure to a high-profit structure. *For more details, please refer to the PDF document or feel free to contact us.

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