Case Studies

A large aerospace manufacturer

Driven by pressures to release cash and become more efficient, our aerospace industry customer began a concerted effort to reduce its inventory costs and consolidate the number of suppliers:

"Starting with a series of Business Process Improvement events, opportunities were identified to improve the inventory management process, resulting in the introduction of vendor-managed inventory. To support deployment of this system, Leonard Gould was selected as one of the five key commodity suppliers.

From the beginning, Leonard Gould has been instrumental in supporting the significant improvements we have made against our objectives of reducing inventory and becoming more efficient. We have gone from needing a Buyer managing packaging at least 50% of their time, to less than 5 minutes each day reviewing the status - giving LG the ability to manage our inventory has clearly given us significant and sustainable benefits.

Over a period of 6 months, Leonard Gould also supported us in reducing the number of packaging suppliers from 6 down to 1. The additional benefits we gained from this activity were some significant cost reductions, with no compromise to the quality of the packaging. The support LG gave during this activity was exceptional, from an hours-committed and technical perspective.

Having seen sustained benefits, we have identified opportunities at our other sites to consolidate their packaging supplies with LG, a clear testament of the level of confidence we have gained in Leonard Gould.”

In fact, this aerospace industry customer continues to benefit from an annual £xx,xxx saving in procurement costs and the process has been rolled out across two more of the customer’s sites, yielding similar benefits of:

Savings in procurement costs

Greater efficiency in the procurement process

No cash tied up in inventory

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