A client requested RubinBrown assess their inventory management processes. The client's objective was to streamline their inventory systems while at the same time maintaining their customer response rate and customer satisfaction. Over the course of six months, RubinBrown analyzed the client supply chain from purchasing through seven individual warehouses and production facilities. Our recommendations included updating purchasing systems, increasing inventory accuracy through cycle counts, consolidating several departments, managing inventory into one department and reorganizing warehouse layouts. The resulting report served as a blue print for our client to more efficiently manage inventory while maintaining client satisfaction.
Production Process Analysis
RubinBrown was engaged by a food manufacturer to investigate why their process loss jumped unexpectedly by 10%. We began our work by observing receiving and warehousing operations including quality control procedures for stored raw materials. We then worked through the production process to determine the data being gathered and how the results were being analyzed. Finally, we worked with one of the client's customers to determine if delivery methods had changed. The resulting report recommended increased measurement and monitoring over both raw materials and the production process. Management was able to take our report and internally change procedures to better manage their operations.
Warehousing & Distribution
RubinBrown assisted a client in identifying and resolving a physical inventory issue in a decentralized warehouse location. Through systematic assessment of our client, we determined they were not prepared to accept the initial shipments of materials from their customer's existing warehouse into their own (i.e., no inventory system on-line, racking set-up, or lack of experienced warehouse personnel). Furthermore, the on-going receiving, shipping, and cycle counting processes in place were not entirely effective. The solution RubinBrown provided included assisting the company in determining the root causes of the problems, facilitating a wall-to-wall physical inventory count and reconciliation, and designing procedures to ensure proper inventory management going forward that eliminated the problem entirely.
Real-Time Internal Reporting
RubinBrown has implemented several internal applications using Microsoft SharePoint to provide real-time scheduling, pipeline and new business reporting, document sharing, financial dashboards, and other KPIs. This allows for greater transparency for team members.
Customer Service Calls
RubinBrown helped a consumer goods company devise a strategy for categorizing, capturing and monitoring the subject matter of its customer service calls in order to better serve its customers in the future.
This included dashboards and trend reporting that provided real time updates to key stakeholders in the company. This allowed the client to quickly identify and address potential product issues.
Inventory Cost Trend Reporting
RubinBrown helped a company develop a strategy to monitor and react to changing pricing by creating trend reports. This included reporting and alerting when product costs increased or decreased within specific percentages over specific time frames. This allowed for better purchase planning and improved vendor negotiations.
The Business Improvement Group has compiled the following resources that may be helpful to you or your business:
Information Systems Audit and Control Association (ISACA) – www.isaca.org
Institute of Internal Auditors (IIA) – www.theiia.org
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) – www.coso.org