An IT supply chain company was under pressure to improve margins. It’s current transactional processes were highly manual and as a result labour costs were eating away at profit.
An enterprise level strategy was developed to improve the efficiency of the value stream, reduce lead times, increase customer and reduce labor costs. Teams were trained in Lean principles and a series of Rapid Process Improvement Workshops (RPIWs) were implemented to focus on automation and elimination of non-value added steps. Project governance mechanisms were created to manage and coordinate the various RPIWs and IT project activities. In addition, change management and employee adoption was key to successfully implementing these changes.
This project successfully generated $500K in labour savings and cost avoidance of over $3MM. The ROI on this project was 2 months.