The Power of Pipeline Planning:
Saving And Securing A Critical Customer Relationship Through Improved Plant Performance

THE CHALLENGE:
The client, one of the world’s largest private-label drink manufacturers, built its business by contracting production from regional bottlers. During a flurry of acquisition activity, the company rapidly purchased several of its largest suppliers. Historically strong in marketing, the client found itself with a North American network of 10+ plants and limited operational capabilities. Rising supply chain costs and drops in quality and service were threatening key customer relationships at an already precarious financial moment. When a critical customer threatened to leave – the implications of which may have torpedoed the entire company – our team moved into the client’s plant in Texas to rapidly elevate performance and repair this vital relationship.

THE PARTNERSHIP:
Analysis: We immediately created a joint client team consisting of representatives from both the client and the customer to solidify an understanding of the relationship’s components (e.g., perception vs. realities in ordering, forecasting, promotions, shipping, billing, and mutual short and long term wish lists.) We then developed a detailed understanding of the capabilities of the CRP system that was supporting the entire fulfillment process, as well as MIS capabilities and structure within both companies.

Implementation Plan: Based upon the analysis, it was apparent that a pipeline-planning program could fundamentally enhance the client’s performance consistent with the customer’s requirements. Working hand in hand with plant floor, MIS, and fulfillment personnel from both companies, the team set out to build a joint program on anchors of stability and consistency. The program centered upon producing in a repetitive/known-scheduled sequence – which would thereby increase asset effectiveness via consistent production patterns. In addition, once the analysis showed that demand volumes were relatively stable at POS and customer DCs, and that promotions were actually far more predictable than previously believed, a general belief in the program’s achievability created a momentum around which team members coalesced.

Execution: Our collaborative, cross-functional team encompassed management, operations, and IT representatives from the client, their broker, and a key customer in the area – one of the largest grocery chains in North America. Beyond systems linkages, rollout elements included improved scheduling and production planning, reduced waste (both product and process), and tighter management of 3rd-party logistics providers. Since the relationships between the various companies had been previously strained, VertiSync personnel helped to hone and manage each party’s weekly deliverables to ensure that critical trust and cooperation was rebuilt and momentum was gained.

THE RESULTS:
The pipeline-planning program proved enormously beneficial to both organizations and transformed a fractured relationship into a fulfillment benchmark. The client was able to hold on to a pivotal, multi-million dollar customer and to increase volume by 40% over the previous year. Inventory was reduced by 20% and cycle time was reduced by nearly 50% as a result of the new levels of inter-company cooperation. Moreover, the client’s operations soon stabilized and the result of our team’s wider efforts, enabling the company’s stock price to quadruple in the 12 months following the completion of our work.