The world of business has fundamentally changed.  Power in the customer-supplier relationship has shifted to the customer. To survive, your company must become more responsive to customer demand, including integration of a consolidated supply base, while maintaining profitability. To compete, manufacturing companies must create a responsive supply chain that is Capable, Predictable, Repeatable and linked to customer demand through from the channel through the supply base.

DemandPoint has created the Demand Flow Technology: Process Audit to quickly identify specific supply chain opportunities to deliver tangible income and cash based benefits, or said another way: superior customer service, cost savings through productivity improvement and free cash flow benefits in working capital by reconstructing the DNA of your supply chain using demand driven principles. 

Typical Client Results:

95-98%+ Customer Service Levels and 99+% On-Time
15-20 % Productivity Improvement: driven by mixed-model design and alignment to demand
25-40% Working Capital Reduction: driven by “Right-Sized” raw and work-in-process (WIP) inventories optimized to current process capabilities

The Process Audit provides DemandPoint, an opportunity to review a client’s existing business with the objective of developing a roadmap to implement the science of Demand Flow Technology.  The DFT Process Audit focuses on what specific actions a client should start with, how long the transformation should take and the definition of resources required.

The Process Audit typically involves 2-5 days at the client site interviewing key resources, reviewing the facility and existing business processes with an additional 1-2 weeks of data modeling and analysis at the “DFT Development Center” of DemandPoint, located in Denver, CO. 

The output is the detailed plan outlining the income and cash based benefits at the P&L level, resource requirements, capital investment suggestions (if any), metrics, objectives and goals for the business required with a Demand Flow Technology transformation. In the design of the Transformation Roadmap, savings are delivered in 2 to 5 month increments, targeted at a minimum of 10:1 return on investment.

Discussion Topics

Baseline Performance Measurements
Definition of Lead Times
Inventory Levels and Targets
Inventory Policies
Material Management Systems
Order Management Systems
Manufacturing Execution Systems
Forecasts/Total Demand
New Product Introduction Strategy
Customer Channels
Distribution Strategy
Response Opportunities

Audit Deliverables

Demand analysis to determine high level order fulfillment requirements. 
High level mixed model response capability in operations and supply chain.
Baseline “interval” determination to balance supply and demand and set “cadence” of value chain from customer order fulfillment to supply replenishment.
“Right-sized” inventory analysis expressed in $ assuming a given set of customer service and manufacturing policy assumptions.
High level roadmap to achieve “right sized” inventory and establish new processes to maintain a balanced value chain
Summary of transformation changes required to enable company to achieve expected benefits

For Case Studies and further information on the Demand Flow Technology: Process Audit or any of our offerings call DemandPoint today at (303)792-8300, or visit us at www.demandpointinc.com.