Letourneau Technologies, dubbed the “mighty movers of the earth”, is a global group of organizations specializing in the design, manufacture, and effective use of advanced technologies for the drilling, forestry, mining, and steel markets.

Business Challenge “MRP was simply not working in the face of our supply chain variability and volatility.” Material shortages caused cascading disruptions to schedules across the company Chronic shortages and too much inventory High over time and expediting and On time delivery in the 70’s

Robert Parker from LTI on R+®: “Visibility. Ease of use. Stock outs cut in half. Dramatic increase in flow. Focus to manage our inventory. Dramatic lead time reduction.”

The Solution

LTI needed simple, correct signals to align and synchronize their resources and working capital across a highly complex product structure and integrated supply chain.  The implementation of Demand Driven MRP concepts and Replenishment+® software laid the foundation.

• Dramatically compressed lead times
• Un-buffer stock positions that created no value
• Aligned supply signal to demand pull across the business groups
• Provided priority visibility across the supply chain

The Results

Implemented Demand Driven Principles in 2005:

• 6X growth in sales revenue  -  80% growth in inventory dollars
• RACE (Return on average capital employed) from 4% to 22%
• Lead times for loaders cut in half