OTIF back up to 95% — metals industry group
Dormant stock reduced by 30%, exit from the customer’s heightened supervision status. Transition Supply Chain Director, 8 months.
The context
A metals manufacturing site within a multi-site group, around 280 employees. OTIF (on-time-in-full) had dropped to 71% within a few months, following a poorly managed ERP overhaul and significant turnover in the supply chain function — two successive supply chain directors had left the role in under a year. The site’s main customer had formally placed the supplier under heightened supervision, with a risk of losing volumes as a result.
The mission
An transition supply chain director takes on the role to stabilize flows, make forecasts more reliable, and restore visibility — for both internal teams and the customer — ahead of building a sustainable supply chain organization.
What was done
Rapid audit of the root causes: incorrect ERP configuration following the overhaul, recurring supplier shortages on critical references, stock misallocated between sites. Three-pronged action plan: making ERP data reliable, renegotiating cycles with the most critical suppliers, and a targeted plan to work down dormant stock. Weekly reporting set up and shared directly with the customer to rebuild trust during the turnaround phase.
The renegotiation of supplier cycles focused on around ten critical references accounting for most of the shortages observed: moving to firm orders on a longer horizon for components with long lead times, and setting up targeted safety stock rather than across-the-board overstocking — this targeted approach is what allowed dormant stock to be reduced without recreating shortage risk elsewhere.
The results
OTIF back up from 71% to 95% in eight months. Dormant stock reduced by 30%, freeing up cash and storage space. Exit from the customer’s heightened supervision status, with a return to normal contractual terms. Role stabilized: a permanent supply chain director was recruited and trained alongside the transition director during the final weeks of the mission.
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