THE OBJECTIVE

• A top five national cable company asked Cavallino to assist in assessing the strategy, process and infrastructure of its Supply Chain

• Identify and achieve supply chain cost reductions

• Standardize & increase control through improved visibility, reporting & compliance

• Optimize key transportation activities including freight expense and fleet management

• Right-size inventory levels and improve forecasting accuracy

 

THE CHALLENGE

• Supply chain operating model results in increased labor, facility, and inventory carrying costs while not fully supporting customer experience requirements

• Lack of standardized processes, increased operating costs

• Lack of end-to-end responsibility, visibility, and control of supply chain performance

• Current design has multiple hand-offs and touch-points

• Organizational structure is siloed, inconsistent and not well understood

• High number of non-standard operating locations drive cost & service

• Multiple non-integrated systems contribute to significant rework and data integrity

 

THE SOLUTION

• Developed a current state assessment of key supply chain activities

• Strategic initiative roadmap to close gaps and increase maturity level

• Redesigned the supply chain organization, provided staff augmentation in procurement, reduced obsolete inventory, collected freight overcharges from suppliers, optimized the distribution network and created a new supply chain strategy for the organization

• Implemented best practice supply chain processes, optimized workflows and improved resource utilization  

 

THE RESULTS

• Centralized the supply chain function: $300M

• Inventory Optimization:  $66M

• Freight Optimization: $8M

• Fleet Optimization: $43M

• Tactical Improvements: $77M