Case Study


Medtronic logo
Medtronic CRM Division
Supply chain safety stock analysis


Objective

The CCE was challenged to come up with an innovative solution to address the bullwhip phenomenon between facilities within their CRM supply chain.


Approach
  • Developed a Smart Pull Process that would account and compensate for the monthly, quarterly, and year end spikes that occur in the medical device industry
  • Performed an inventory sensitivity analysis that compared the current safety stock equation versus the recommended CCE equation
  • Redefined key performance metrics
  • Developed an implementation roadmap

Outcome
  • 12.2% savings in inventory investment and 23% improvement in service levels for the vertical suppliers
  • Improved visibility, communication and organizational alignment which allows the change from reactive to proactive management