John Hamm, Plant Mananger at ACME Corporation, a food manufacturer, had been shorted or overstocked on packaging for the last time. Like most companies, ACME did its best to accurately forecast customer demand, lead times, and existing inventory, so it could always have the right amount of the right packaging at the right place at the right time. Unfortunately, there was a lot that could go wrong. Customers might cancel or double orders on short notice, label changes could make packaging obsolete, bad weather could stop trucks, suppliers could have issues… the list is very long!
Due to the above issues, ACME consistently found itself either overstocked or shorted on particular packaging items. Out of frustration, John went to the internet in search of a solution. John came across ForeFront Packaging’s website, which promised to cure packaging short-stock/over-stock problems, and he reached out. ForeFront visited John, and helped gather data on usage levels and variances, as well as distances in the supplier/warehousing/ACME-plant web. ForeFront did the analysis, and found a way to ‘near-site’ packaging with high usage variance, solving ACME’s short-stock issues. ForeFront began monitoring over-stock (aged inventory) to reduce carrying cost and the cost of obsolesce.
ForeFront was able to solve ACME’s short-stock/overstock warehousing issues while at the same time reducing overall stocking levels.