THE CHALLENGE

Recently Smith Dairy's management formed a cross-functional team to assess the company’s procurement practices; determine how these compare to those used in similar businesses; and, identify and recommend improvements. Smith Dairy then asked MAGNET to help them evaluate and improve their purchasing practices in the Orrville, Ohio and Richmond, Indiana facilities.

MAGNET worked with Smith’s Project Team in each location to broaden the view of the team and assist in identifying ways the company could take advantage of improved industry practices. By doing this, the company hoped to leverage purchases across plants; streamline processes to approve and pay invoices; reduce turnaround time for invoice approval; and, establish standard procedures for requisitioning and purchasing.

THE APPROACH

MAGNET recommended an approach that involved work at the two facilities. Current systems and procedures were documented and a high-level map of current procurement practices was developed. Also examined were best practices for procurement in the dairy industry. This helped identify a possible future vision for Smith Dairy and described the steps needed to bridge the gap.

This work included a current state procurement flowchart, business objectives and metrics, future process flowchart, Gap assessment, prioritized project list report and project management. A list of programs and action plans then was produced to become the focus of Smith’s new procurement system.

CUSTOMER QUOTE

“We would definitely use MAGNET again in the future. The business improvements they have suggested will effect the changes we make to improve our operations and efficiencies.”
Steve Hines - Vice President, Finance

Top ^