Operations and Supply Chain Optimization

A medical device company focused on the design, marketing and manufacturing of surgical products for spine disorders experienced low fill rates, weak ordering governance, poor field inventory visibility and elevated purchasing and material input costs and engaged Trindent to complete a structured operations and supply chain optimization.

$2,200,000

ANNUALIZED SAVINGS

14%

FILL RATE IMPROVEMENT

$1,100,000

REDUCTION IN YEARLY PURCHASING SPEND

HOW WE MADE IT HAPPEN

  • Formalized key supply chain and customer satisfaction indicators: order fill rate, inventory ABC segmentation, average back in stock date, inventory planning accuracy.
  • Improved accuracy of production signals by adjusting inventory category parameters. (min/max/safety stock)
  • Implemented a vendor-managed inventory program and formalized the buying process, saving $1,100,000 annually.
  • Redesigned warehouse layout to streamline picking and flow of material to enable the consolidation of orders to various distributors, saving $310,000 annually.
  • Installed inventory turns and tissue expiry reports to reduce net field inventory levels by 13% in 3 months.
  • Designed operating dashboards and daily meeting for departmental managers to review KPIs and determined a plan of action to address variances to targets.
  • Redesigned the return of material process to release $2,000,000 in previously invisible stock • Reduced inbound priority overnight shipments by 57%.
  • Reduced outbound priority overnight shipments by 20%.
  • Reduced overtime hours by 31% in manufacturing, quality assurance, clean room and distribution.

 

“From the start, the Trindent team integrated with our staff at all levels. In a very short time, the team uncovered over 50 process improvement opportunities and worked collaboratively with groups in customer service, planning, purchasing, manufacturing, and distribution to execute their implementation. Furthermore, a formalized continuous improvement program was defined which accelerated the pace of change in the business.”

– Chief Operating Officer

by Trindent Consulting

Medical Technology A/R Solutions

One of the world’s largest medical technology corporations was facing large rebate disputes, costly damages and returns, and difficulty managing Accounts Receivable and engaged Trindent to identify and implement solutions.

6%

REDUCTION IN PRICING ERRORS

$7,700,000

ANNUALIZED SAVIINGS

67%

REDUCTION IN DAY SALES OUTSTANDING

HOW WE MADE IT HAPPEN

Achieved $2,800,000 reduction in working capital Eliminated 50% of customer data errors with new through improvement of DSO:
  • Refined and optimized collection targets based on collections performance in each age bracket.
  • Reduced A/R Bad Debt reserves by 50%.
Saved over $1,300,000 in shipping costs and damages:
  • Reduced shipping discrepancies by over 40%.
  • Developed standard auditing processes and tools for each shipping methods to maintain the benefits realized.
Eliminated 50% of customer data errors with new data management protocols:
  • Implemented a set of tools and processes to identify and prioritize customer error resolution.
  • Introduced service levels and KPIs to eliminate backlog and set operational targets.
Reduced Pricing errors by 6%:
  • Developed and implemented a system for Pricing and Rebates which reduced and synchronized pricing/rebate data with distributors.

 

“Trindent’s practical, hands-on implementation approach was able to quickly solve very complex issues that improved the experience for internal departments, third party facilities and end customers. The speed at which Trindent was able to bring acceptance and accountability into the project and the ability to convert the project into a ‘business as usual’ continuous improvement culture is what impressed me the most.”

– Chief Financial Officer

by Trindent Consulting