Metric Business Success Stories 

At MBA we deliver real results to our clients. Our goal is to make your company more profitable and we have a track record of accomplishment that has delivered significant value to our client organizations. Although many of our clients request confidentiality as to the work we perform, we can share some of our successes here.

Supply Chain Modeling

Problem : A large food processing company is struggling with profitability.

Solution: MBA conducts a Supply Chain Modeling exercise to identify unprofitable business practices and to recommend improved processes that increase profitability.

Result: Client closes one plant, opens another in a different geographic region and  delivers more value to shareholders and improved service to customers.

Savings: $3-4 million annually.

ERP Implementation

Problem : A $400 million building products manufacturer implements an Enterprise Resource Planning system. However, problems that precipitated the need for a new ERP system continued as if nothing had changed.  Inefficiencies were common and profitability was being significantly impacted.

Solution: MBA conducts an operational audit of the implementation and related business practices.  From this study, MBA leads a business process reengineering (BPR) project that includes comprehensive operational performance tracking and planning.  As a result of the BPR project, MBA also reviews organizational structure and its ability to adequately support the new processes.

Result: Client adopts newly reengineered business practices that significantly tighten controls around product returns (reverse logistics) and supply management.  The Client discovered that a significant part of the losses were a result of a poorly designed returned goods programs and was able to reduce their returns handling staff from 35 people to only 4. 

Savings:  Over $7.5 million per year.
  

Inventory Management and Logistics

Problem : A large plastics manufacturer is experiencing runaway inventories in raw materials and finished products. Inventory turns are 2-3 and 75 semi-trucks loaded with finished material are parked in the driveway because they have run out of warehouse space to store all the products.

Solution: MBA conducts an operational review of the firm's supply chain practices. MBA finds Sales and Marketing strategies are not aligned with Manufacturing.   Further, Production schedules are generated from forecasts, actual Sales are out of sync with forecast and raw materials are being ordered according to actual Sales.

Result: Client adopts streamlining of supply chain practices as recommended by MBA.

Savings: Inventory turns are now 7.5 and increasing. The Supply Chain is optimized in that Production is synchronized with Sales and Marketing. Raw materials ordering is synchronized with Production. Less cash and storage space are tied up in inventory reducing the holding costs for the inventory and freeing cash for other corporate purposes.   Total real cash savings generated:  close to $1 million per year.
 

Sourcing and Procurement   

Problem : A large medical manufacturer is experiencing pressure on profits and must reduce costs substantially in normal operations.

Solution: MBA conducts a strategic sourcing review and discovers the opportunity to achieve significant cost reductions in the current fiscal year.

Result : Client engages MBA to conduct several Strategic Sourcing events for specific products and services.

Savings: Through business processing reengineering and sourcing activities, client realizes $2.4mm in recurring savings on $27mm in spend.

Project Management   

Problem: A large food cooperative is implementing an Enterprise Resource Planning system.  The project is considerably behind schedule with a fast approaching go live date. Because of the seasonality of the company's business, a missed go live will delay the project another year.

Solution: MBA conducts an audit of the client's implementation effort and discovers several opportunities for getting the project back on track.

Result: The client adopts MBA's recommendations to properly document the remaining work according to best project management practices. The work is then reviewed to determine its impact on business operations. The work is prioritized, staff is properly deployed and a project reporting structure is established to review progress daily and take decisive corrective action.

Savings: The project delivers on-time with the necessary business functionality and the client reaps the business benefits of the project one year earlier than otherwise possible.

Information Technology  

Problem: Client has just implemented a large-scale ERP system and associated network infrastructure. Upon go live, the system is incapable of delivering the necessary performance required by the business. Thus, the business is incapable of entering orders and fulfilling them in a reasonable amount of time. Consequently, staff must be supplemented with temporary workers and scheduled around the clock to process the necessary business information through the system.

Solution: MBA conducts an Information Technology audit of the newly implemented environment and discovers the database server is undersized for this particular implementation. The cost of the upgrade is $250,000, plus additional software costs.

Result : MBA implements work management, tuning and configuration changes to the the client's IT environment.

Savings: The client postpones the upgrade for two additional years, dismisses the temporary workers and begins leveraging the business value they expected from the ERP system. Total savings to client: $1mm.

What Gets Measured, Gets Done.