$200M Rolling Mill Division of Global Company (U.S.)
Business Case
Summary
ROC = 2% vs. 15% target. CEO threatened to close division for sub par profitability
No Logistics Department or expertise; only one traffic specialist in each of 2 plants
Supported top management in development of logistics manager
Coached management to implement Lean logistics integrated with Lean manufacturing
| Before | Metric | After |
|---|---|---|
| $57M | Logistics Cost | $51M (-10%) |
| 6 weeks | Order-to-shipment lead-time | 2 days (-95%) |
| 2% | Return on Capital | 16% (+700%) |
| 95% | %of orders changed | <5% (-95%) 0.6 (-40%) |
| 1.0 | Demand fluctuation (index) |
Logistics manager has been able to continue on his own and has become a company-wide leader of logistics improvements