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monitored the overall performance of the supply chain and developed a winning organisational mindset .” The results are quite remarkable . Arxada has :
• Reduced back orders by 70 %
• Reduced inventory by 14 %
• Reduced manufacturing cost by 5 %
“ That happened very quickly – in the first 90 days . In one year , backorder reduction has gone from 70 % to 86 %, a 39 % reduction in order delivery failures and a 29 % inventory reduction .”
Arxada has built KPI driven processes and people capabilities to set the stage for the next journey and has been sharply focused on its externally benchmarked force quartile supply chain performance .
“ We looked at supply chain performance in a variety of ways , both from the number of people required to do it , inventory turns , supply market service levels – the full suite of what you would expect the top quartile supply chain to do ,” says Willis .
“ Then , we looked at it from a more subjective view of the characteristics of a top quartile supply chain , which are important for us and which are not .”
Arxada made conscious decisions on what the first quartile should look like .
Over the next year , Arxada intends to implement a fit for purpose end-to-end supply chain planning tool , with asset optimisation and full financial scenario planning capability .
“ We plan to improve our end-toend synchronisation and collaboration capabilities with suppliers and customers ,
140 December 2023