Implementing growth doctrine for a furniture manufacturer
We changed the method of raw material purchasing planning, basing it on hard sales data. We eliminated production downtimes caused by a lack of fittings.
A carpentry plant near Wrocław had a problem with deadlines. Furniture stood unfinished because small elements, like hinges or handles, were missing. We introduced a simple system for ordering goods based on what the company actually sells.
The challenge
At Meble-Styl Wrocław, every week there was an average of 11 hours of downtime. Employees waited for fitting deliveries that were stuck at the supplier or hadn't been ordered on time. The situation was tense because penalties for installation delays for clients began to eat the margin.
Furniture boards worth 38,400 PLN that no one had used for six months were sitting in the warehouse. Meanwhile, details worth a few hundred zlotys were missing, which blocked the whole line. 14% of clients filed complaints due to delays exceeding 8 business days. The owner was losing control over where the money was leaking.
Our approach
We sent 2 people to the production hall for 4 business days. We checked every purchase document from the last 7 months. We looked for gaps in everything – analyzing why no one watched minimum stock levels and who approved unnecessary purchases.
We spoke with the production manager and accountant to understand where the cash was getting blocked. We didn't play at drawing pretty charts for the board. We focused on what happens at the saw and in the order sheet. Net profit counts, so every procedure that didn't earn went into the trash.
The solution
The rules are simple. We created an order sheet that calculates itself when to buy goods based on real sales, not a warehouseman's hunch. We identified 17 key components that must always be in stock in a specific number.
We introduced a strict budget rule for emergency purchases – no more buying at the last minute at hardware stores at inflated prices. We cut off 3 unreliable suppliers who were more than 4 hours late with transport. Now, purchases are made once a week, saving the logistician's time.
Results
The company stopped "freezing" money in unnecessary materials. Production flows smoothly, and installers don't sit idle waiting for a courier with hinges.
Timeline
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July 2024Physical warehouse audit and analysis of purchase invoices.
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August 2024Sale of unnecessary board stock and cash recovery.
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October 2024Launch of automatic inventory planning sheet.
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December 2024Verification of results and signing of new contracts with suppliers.
"At first, I thought it was just more tables. But when in December we delivered all kitchens before the deadline, I saw the difference in the wallet. Facts on the table: we regained peace of mind."