Going Up: Manufacturing Supply-Chain Benchmarking and KPIs

Our last two posts about the itelligence supply-chain benchmarking survey have talked about key performance indicators (KPIs). We saw how itelligence CPG client Stubb’s Legendary Kitchen got cookin’ on KPIs, and how industrial-clothing distributor West Chester Holdings Inc. received better KPI coverage from it.wholesale. Now let’s see how itelligence helped Schumacher Elevator Company rise to the occasion in the world of manufacturing.

It might be a long way from the Mile High City, but the small city of Denver, Iowa is home to some serious elevation. For the last 75 years, Denver’s own Schumacher Elevator Company has manufactured freight and industrial-lifting solutions. Four successive generations of Schumachers raised the company’s profile before hitting a ceiling. Schumacher decision makers established these objectives for renewed business lift:
• Improve customer service by reducing lead times
• Obtain greater control over operations
• Develop infrastructure for Web-enabling critical aspects of business, such as online order status

Schumacher understood that these goals required replacing a non-integrated legacy ERP system. After comparing three other possibilities, Schumacher chose the express lift and selected it.manufacturing, a fully qualified SAP Business All-in-One solution.

Not only did it.manufacturing offer the Web integration that Schumacher needed, but the preconfigured solution also came built on SAP Best Practices, supporting a short implementation period.

In just eight months, Schumacher went live with it.manufacturing. Less than two years after that, the organization achieved ROI, having established real-time project status; improved tracking and better order customization. Schumacher’s revenue shot through the roof during the next six years, increasing by 89 percent, while IT costs ran express to the basement, decreasing by 50 percent.

To get a better idea of the heights that Schumacher achieved with it.manufacturing, let’s take a look at these KPIs:
• Product lead times: Reduced by 25%
• Sales closings: Increased by 15%
• Raw materials costs: Reduced by 30%
• Time to close books: Reduced by 25%

With numbers like these, you have to ask yourself – are you achieving the results you are looking for in your supply chain operations? Soon we will be sending out the final results of the survey, so you can see how your supply chain operations stack up against your peers and industry leaders.

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