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Northern Elastomeric, Inc.: Lean Inventory Levels Resulting in Improved Customer Satisfaction
Northern Elastomeric, Inc. (NEI), headquartered in Brentwood, N.H., is one of the nation's leading suppliers of SBS-modified asphalt, self-adhesive, roofing and moisture barrier products, serving the North American construction industry. Among its products that are most in demand are roll-roofing underlayment, foundation waterproofing, and innovative flooring-crack isolation membranes. All NEI products are manufactured for private label distributors.
THE SITUATION
A fast-growing supplier, NEI's delivery performance was declining, creating a significant problem with past-due shipments, even though the company had an excess of finished goods. Since customers were unable to trust NEI's delivery promises, they would submit "place-holder" orders as backup. The movement and cancellation of these largely extraneous orders generated considerable distress within NEI.
In trying to remedy its delivery problems, NEI would increase production of finished "Besides the unique goods, but typically it built the wrong inventory, and shipment dates consistently were missed. Unneeded materials sat in finished goods for six to eight weeks. The resulting pull-system software, high finished-goods inventory meant the company tied up more cash and required additional warehouse facilities.
Infor had the experts
With its current processes, NEI had no easy, formal system for managing priorities and work flow. Although priorities were developed in weekly production meetings, they would change ten minutes after the meeting concluded. They understood it needed a system that enabled it to deliver more rapidly and on time to take advantage of its potential for 20 percent annual sales growth.
THE SOLUTION
Once NEI determined it needed to move to a leaner operation, one that was much more responsive to customers and required lower inventories, it found that Infor was the only company offering the lean expert consulting and the protected pull Infor VISUAL Easy
Lean software that they required to improve operations. Infor's Throughput Improvement Group PSO experts conducted an assessment of NEI operations and workflow training, and projected its future-state operations. After receiving the assessment, NEI management chose to adopt the Infor Fast Track process to implement Infor's VISUAL Easy Lean meth and software.
NEI's vice president of manufacturing, Sam Pollard explained, "Besides the unique pull-system software, Infor had the experts we needed to change our operation. They understood our business and recommended a rapid improvement plan in just a couple days. During the Fast Track process, Infor's real-world experience helped us implement proven methods and disciplines that we needed to get great results."
REAL RESULTS
Infor's capabilities rapidly resolved NEI's problems and heightened its performance in business. Even though sales leapt 20 percent, delivery performance improved from very poor to virtually 100 percent on time. Pollard noted, "Now our customers trust us and the ?place holders' have all but disappeared. Finally, our chronic past-due problem last year is gone."
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