Distribution / Supply Chain
Companies that have implemented TOC:
Below are some chosen success stories worldwide after implementation of TOC.
* Info taken from, The World of TOC: Reference Bank.
Warren Featherbone Company, United States.
Industry: Textiles & Apparel
Brief Summary: Major improvements in entire supply chain – Warren Featherbone improved margins by nearly 20%, while improving turns from 2.5 to 4.5. Mercantile?s retail store experienced gross margin increase of 135% and store space decreased 50%.
Mercantile Stores, United States.
Industry: Other
Sales: $2,400,000,000
Brief Summary: Improvements in supply partners as well – creating win-win. Mercantile?s retail store experienced gross margin increase of 135% and store space decreased 50%, while Warren Featherbone improved margins by nearly 20%, while improving turns from 2.5 to 4.5.
Mercantile Stores, United States.
Industry: Other
Sales: $2,400,000,000
Brief Summary: Improvements in supply partners as well – creating win-win. Mercantile?s retail store experienced gross margin increase of 135% and store space decreased 50%, while Warren Featherbone improved margins by nearly 20%, while improving turns from 2.5 to 4.5.
Orman Grubb Company, United States.
Industry: Furniture
Brief Summary: Guarantees order will arrive in 2+2 (2weeks and 2 days after order placement). On full replenishment mode with retailers and has increased their turns to almost 25. Six month average sales to dealers is a straight line, trending up.
Afrox Ltd
Division: Industrial & Special Products , South Africa.
Industry: Other
Sales: $650,000,000
Brief Summary: The implementation of a Constraint and Customer focused PULL system has been piloted in the central warehouse and a few of their distribution sites. Simulations and actual results have shown a significant improvement and reduction in the variability of the OTSA & DIFOT performance (sustaining levels within target levels of 99% to priority customers on priority products) while at the same time enabling a reduction in overall stockholding. TOC has also been implemented at one of the “problem” factories that frequently jeopardised the OTSA and DIFOT targets with excellent results. Based on the results to date, a decision has been made to roll-out TOC to other sites.
Schlly Fiberoptic GmbH
Division: Entire Company , Germany.
Industry: Medical equipment
Sales: $17,000,000
Brief Summary: Inventory went down significantly just a few weeks after project kick off while throughput and due date performance went up at the same time. Inventory turns improved from 3,6 to 5,3. Replenishment just started in August 2002, its first results are promizing. The project created a significant competetive edge. The whole management team is looking foreward for the next impressive steps with TOC.
The Nielsen Company, United States.
Brief Summary: 90% reduction in inventory in the system, expediting reduced while on-time became virtually 100%. Annual savings in labor cost alone amount to more than 1 million dollars.