Business Case
ROC = 2% vs. 15% target. CEO threatened to close division for sub par profitability
No Logistics Department or expertise; only one traffic spe t in each of 2 plants

Actions
Supported top management in development of logistics manager
Coached management to implement Lean logistics integrated with Lean manufacturing

Results

Before $57M 6 weeks 2% 95% 1.0

Metric Logistics Cost Order-to-shipment lead-time Return on Capital %of orders changed Demand fluctuation (index)

After $51M (-10%) 2 days (-95%) 16% (+700%) <5% (-95%) 0.6 (-40%)

Summary
Logistics manager has been able to continue on his own and has become a company-wide leader of logistics improvements