PPG , a company specializing in industrial coatings, was recognized with the title of “Company of Excellence” for the effective implementation of its supply chain improvement model.
This achievement was due to PPG’s implementation of the Demand Driven Operating Model strategy , a methodology that redesigns logistics processes in response to the volatility, uncertainty, complexity and ambiguity of the current environment (VUCA World).
“Adapting to the current logistics environment was key to the project’s success. Our priority was to understand the client’s needs and develop a more flexible, connected, and efficient model,” said Ricardo Bribiesca, ERP Director, Data and Materials Management at PPG.
The implementation of this model began at the San Juan del Río plant in Querétaro , and part of the strategy consisted of developing a methodological approach that included geographic analysis of operations, preparation of detailed logistics flow diagrams, value mapping and identification of undesirable effects. With these diagnoses, a project portfolio was created aimed at reducing inefficiencies, anticipating risks and strengthening customer service.
As a result, PPG has achieved significant progress in two years, such as reducing excess inventory by 30% in raw materials and 44% in finished goods.
Also, a 40% reduction in obsolescence, reduced expediting costs, improved delivery times and real-time logistics visibility, as well as efficient inventory distribution and more consistent customer service.
This change was driven by the need to create a comprehensive supply chain project focused on performance, planning, execution, talent, and the fulfillment of strategic objectives.
The recognition to PPG was granted by the consulting firm Sapix , a firm focused on the implementation of new technologies and organizational change management.
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