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Developing integrated capital investment, supply chain, and reliability improvement strategies
A global multi-product business with 20+ manufacturing sites worldwide was averaging the addition of one new manufacturing site per year to keep up with market demand and maintain customer service. Despite market growth, the profitability of the business was deteriorating because the business assets (equipment and inventory) were growing faster than sales revenues. In addition, the business was in danger of losing some customers because of unacceptable service despite substantial investments in inventory. RonaMax provided the decision support tools for developing the strategies that increased after tax profit by $140 Million. These strategies included
 | Capital investment strategy: Defining when new capacity should come on line and the minimum capital investment. |
| Supply chain strategy: Defining inventory management rules that will ensure order shipment within two days. |
| Reliability improvement strategy: Identifying the reliability improvements that offer the biggest productivity impact. |
