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Magna Valor
Magna Valor

Built to Order process optimisation for a global white goods manufacturer

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Our client is a global white goods manufacturer with 36 locations across 10 countries worldwide

CapabilityLogistic process optimisationShare

Challenge

In 2006, the company faced a high failure rate of 11.6% in its Built To Order (BTO) shipments across Europe. This negatively impacted customer satisfaction, brand reputation, and operational efficiency. The complexity of BTO processes, requiring precise coordination of production, inventory, and logistics, exposed underlying supply chain inefficiencies, including production scheduling, inventory management, and logistics operations.

Actions

To tackle the high failure rate and improve BTO efficiency, the company implemented a comprehensive strategy:

  • Process Optimization – Reviewed the BTO process to identify bottlenecks; streamlined production scheduling, inventory management, and logistics coordination.
  • Advanced Forecasting & Planning – Adopted predictive tools to better anticipate customer demand and align production schedules, reducing lead times.
  • Enhanced Quality Control – Introduced stringent quality checks throughout the BTO process to ensure orders met specifications, minimizing shipment failures.
  • Supplier Collaboration – Strengthened coordination with suppliers to ensure timely component availability and manage supply chain risks effectively.
  • Customer Communication – Improved communication channels, providing regular order updates and promptly addressing concerns to boost satisfaction.

Results

Within a year, the initiatives delivered measurable improvements:

  • Failure Rate Reduced – Dropped from 11.6% in 2006 to 4.7% in 2007, enhancing BTO reliability and efficiency.
  • BTO Shipment Growth – Despite the focus on reducing failures, shipments grew by 3% in Europe, reflecting increased operational efficiency and customer trust.
  • Higher Customer Satisfaction – Improved communication and service levels led to greater loyalty and satisfaction.
  • Operational Efficiency – Process optimizations and advanced planning reduced waste and costs.
  • Stronger Supply Chain Collaboration – Closer supplier coordination created a more resilient and responsive supply chain.

Summary

Through targeted process improvements, advanced planning, quality control, supplier collaboration, and enhanced communication, the company reduced BTO shipment failures from 11.6% to 4.7%, while growing shipments by 3% across Europe. This case highlights how a holistic approach to supply chain management can significantly improve operational performance and customer satisfaction.