Desire for operational excellence
The existing structures could not propel the company to the level of operational excellence it desired.
Fluctuating demand and supply uncertainty required more precise inventory rules.
Disparate data sources
Leatherman’s reporting and analytics disciplines were underpinned by an archaic ERP system that had been implemented in 1994.
With Logility in place, Leatherman enjoyed its most profitable year in a decade. Accurate, actionable information is now available across the supply chain in real time. The transformation was so complete that the legacy ERP system was decommissioned.
Daily meetings have replaced monthly meetings where most ‘data’ was hearsay and the squeaky wheel reigned. Now the team meets every morning to review critical production reports and answer the two most important questions: 1) Why did it happen?; and 2) What are we going to do about it?
The Leatherman team also cites visibility into formerly hidden costs that drained profits as a huge win. One example is vendor compliance charges — understanding profitability, customer by customer, has given Sales, Operations and Finance new tools to enhance collaboration and make decisions that benefit the enterprise versus one department.
And in addition to basing production schedules on the most profitable segments of the company’s portfolio, Leatherman now uses Logility to better manage inventory across the entire business. As Jordan Baird, IT applications manager, noted, “Logility is flexible. When it comes to reporting, users are no longer restricted. They get what they need rather than what’s available.”
The implementation team noted that among everyday users of Logility, the early euphoria has given way to a healthy resolve to make improvements every day. “They are over the initial excitement. Now that they know what’s possible and how valuable Logility is, they’re hungry for more information. That will never change,” said Baird.
Finally, an important change took place at the top of the company — leadership thoroughly embraced KPI dashboards. To the rest of the Leatherman team, this signaled a lasting commitment to continuous improvement and data-driven decision-making.
Leatherman has also gained the ability to explore new offerings such as extending capabilities with Logility’s predictive analytics and demand forecasting solutions. The momentum reinforces itself, guaranteeing that the future holds even more great Leatherman-inspired stories.
With Logility, Leatherman Tool Group has streamlined production schedules, optimized inventory, increased profit margins, reduced IT bottlenecks and established accountability within the business.