QubicaAMF Success with GAINS
Manufacturing Supply Chain: GAINS Profit Optimizes QubicaAMF’s Vision
20% reduction in active inventory investment
11% increase in plant labor efficiency
Saved $75,000 on freight expenses in first year
A revolution happened in the world of bowling and entertainment on June 14, 2005, when industry leaders AMF Bowling Products and Italian-based Qubica Worldwide announced that they intended to join forces and merge. The result of this merger, QubicaAMF, is one of the largest manufacturers of bowling and amusement products in the world.
“We are going to shake things up,” said John Walker, President and Chief Executive Officer of QubicaAMF. “We will work with our customers to grow their business and ours, and provide the tools to make bowling centers one of the premier entertainment destinations in the world.”
In the quest to “shake things up,” QubicaAMF recognized that one of the key aspects of their success was having the best customer service in the industry. This would mean reducing current back orders to customers and making sure that the right product was on the shelf when a customer requested it. A strategic customer service and inventory management team was put in place to achieve this goal.
“The GAINS project provided the greatest corporate ROI of any IT project in the history of the company.”
– John Walker, President and CEO
Manufacturing Supply Chain
After working with existing tools for a year and making good strides, we realized to continue reducing inventory while improving fill rates would require something more powerful and a fundamental shift in the way we managed our supply chain,” stated Mark Kilpatrick, Vice President of Operations for QubicaAMF. The team began looking to find a tool that would ensure off-the-shelf availability of all products at least 95% of the time, but that would also reduce corporate inventory investment and operating costs. After a national search, they selected GAINS.
GAINS was able to exceed the company’s expectations by taking off-the-shelf customer service levels above 95%, while simultaneously reducing the company’s active inventory investment by nearly 20%. “Implementing GAINS has fundamentally changed and improved every aspect of our supply chain and operations” stated Kilpatrick. “Beyond the inventory improvement and fill rate benefits achieved, we have seen an 11% improvement in labor utilization in manufacturing attributable to both the Inventory management and the scheduling optimization by GAINS. We have taken advantage of optimized purchased lot sizes to renegotiate with our vendors to save $150,000 annually, and the tools and insights provided by the system will provide many future improvement opportunities.”
QubicaAMF is now using the power of GAINS inventory planning and profit optimization to grow market share through leveraging industry leading customer service levels with which their competitors can’t compete.