www.tocpractice.

com

37th TOCPA International Conference

8 March 2018, UK

Retail Supply Chain and Operations

Barry Lill, Owner

Lil Packaging, UK
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Barry Lill

www.lilpackaging.com

+44 (0)1480 396 200

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• What Lil Packaging does

• Where we were before TOC
• Our TOC journey
• What we’re doing now

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What Lil Packaging does

www.tocpractice.com 37th International Conference of the TOC Practitioners Alliance - TOCPA

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Where we were

• Too much inventory of some items, not enough of

others
• Planning system due date based, irrelevant for MTA
products, only of use for MTO = inability to prioritise,
leading to above
• No scaleable growth in sales team
• 70% OTIF if we were lucky
• People liked us and wanted to deal with us

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TOC Journey

• Read the Goal in Jan 2017

• 6 months later we had:
• Dropped batch sizes from 3-6 months to 2-3 weeks
and changed to throughput
• Changed to throughput accounting
• Changed pricing / costing method

• November 2017 started with Goldratt UK

• Transformative coaching…

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 Effect of traffic lights on MTA Presenter’s
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items

Traffic light system

60150

40100

20050

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 Traffic lights vs Current method Presenter’s
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for 1 item

MTA vs Current quantites MTA vs Current value (£)

250000
£25 000

200000
£20 000

150000
£15 000

100000
£10 000

50000
£5 000

0
£0

MTA Current system

MTA Current system

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Inventory improvements

Changes in Stock and Turnover

180%

160%

140%

120%

100%

80%

60%

40%

20%

0%
apr may jun jul aug sep oct nov dec jan feb
-20%

-40%

Change in Turnover compared to previous year Inventory as percentage of turnover

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Other “ingredients”

• Buffer lengths allow MTO to use same traffic

light system
• Sales volume restrictions
• Sales Process Engineering (SPE)

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Next steps

• Dynamic stock management

• PTA and PTO
• Sales and Operations WORKING TOGETHER to
achieve the decisive competitive edge of
guaranteed stock availability.

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Questions?

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