Case Study: Supply Chain Transformation

About the Company

• Multi-national toy manufacturer and distributor with sourcing in North America, China and sales offices in major cities of U.S., Canada, Mexico and Europe.

Challenge

• Due to growth and acquisition, and expanded sourcing in China, the supply chain had significant demand-supply problems leading to cancelled orders, late shipments, low order fill rates, inventory overstocks, and high logistics costs.

Tompkins’ Role

Initiated process of complete global supply chain transformation from demand planning through supply management to:

• Increase forecast accuracy and reduce demand planning complexity.

• Tompkins solved the client’s significant demand-supply problems by initiating a complete global supply chain transformation from demand planning through supply management.

  Implement a sales and operations planning (S&OP) process.
• Control SKU proliferation and rationalize SKU stocking policies.
• Design other new business processes with accompanying playbooks to align responsibilities and organizational structure.
• Simplify NA-China communications, improve the sourcing process and implement a supplier relationship management program.
• Establish new measures of supply chain performance.

The Results

• Customer service: Reduced lead times and increased order fill rates and on-time shipments.
• Financial: Reduced order cancellations, inventories, and air freight expenses.
• Forecasting: Reduced forecasting error rates.