Direct Ship Transformation Cuts Lead Time 60–80% and Unlocks $10M in Inventory Reduction
Industry: Industrial Power Tools & Fluid Pumps
Company Size: < 1,000 employees
Ownership: Public
The Challenge:
Annual Value Stream Analysis: Identified bottlenecks and prioritized lead‑time reduction.
Pull Systems: Implemented line‑side Kanban for assembly and targeted FG Kanban for flexibility.
Workload Leveling (Heijunka): Balanced replenishment for Make‑to‑Stock and Assemble‑to‑Order builds.
Lean Layout: Redesigned assembly, machining, and shipping for flow; stored FG Kanban onsite.
Capability Building: Trained cross‑functional teams in VSA, pull systems, problem solving, and Kaizen.
Demand variability, mixed SKU strategies, long overseas lead times, and distribution‑center dependencies created long order‑to‑ship times and high inventory carrying costs.
Our Approach:
The Results:
60% lead‑time reduction (Make‑to‑Stock)
80% lead‑time reduction (Assemble‑to‑Order)
82% on‑time delivery
$1M annual gross margin improvement
$10M inventory reduction
13.7% efficiency improvement
Why It Matters
Direct ship compresses time‑to‑customer, lowers costs, and frees cash—creating agility and competitive advantage without relying on excess inventory.
Services & Tools: Value Stream Analysis, Pull/Kanban, Heijunka, Lean Layout, Kaizen, Leadership Coaching
