The Situation
Supplier unreliability was being managed with costly buffers and expediting.
Material availability fluctuated with source performance, and inventory compensated for weak trust in supply.
The recurring cost sat outside the gate but was paid inside the plant.
What We Did
We improved source reliability and internal operations together so availability improved at cause level.
- Ran structured supplier development initiatives.
- Paired supplier work with plant-side operational improvements.
- Improved material availability at source rather than buffering against uncertainty.
The Results
Supplier performance improvements increased material availability, supported productivity gains, and delivered roughly Rs 1.2 crore annual savings.
Benefits continue to compound because capability sits in supplier behavior, not inventory buffers.
Strategic Takeaway
- The most expensive inventory is stock held because supply is untrusted.
- Supplier development fixes cause; buffer stock only treats symptoms.
Contact Gemba Concepts
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