Mr. Zerner has over 20 years experience with Fortune 500 and Big 5 consulting firms in the consumer products, high-tech electronics, software, telecommunications, biotech, healthcare, retail, chemicals and building products industries. He is skilled in all areas of supply chain management including a depth of expertise in supply chain integration, replenishment, demand forecasting, inventory management, supply planning, sales and operations planning, order fulfillment, warehousing, transportation, supplier management, network design, information technology and executive management. Selected accomplishments include:
- Re-engineered the supply chain operations of six companies. Identified / implemented improvements in warehousing, transportation, demand / supply planning, inventory management, procurement, order fulfillment, reverse logistics (returns / repair) and network design that generated $560MM in annual savings.
- Expert in using systems tools, process improvements and organizational development to reduce inventory levels and enhance customer service. Reduced inventory levels by $63MM (17%) while improving customer service with two different Fortune 500 employers. Served as demand or supply planning “expert” on 16 consulting engagements.
- Helped 25 organizations save in excess of $725MM annually on their supply chain operations.
Relevant Experience
Consumer Products
o Lowepro (Leading Distributor of Camera Bags and Accessories) – Facilitated the design / start-up of a new distribution company that will serve as the sole supplier of products manufactured in China to customers located in 100+ countries throughout the world. Served as Project Manager for Microsoft Dynamics GP (Great Plains) ERP tool implementation, and led the development and implementation of all order-to-cash and purchase-to-pay processes required to support the new business.
o Johnson & Johnson Consumer Group (Consumer Division of One of World’s Largest Manufacturers of Health Care Products) - Assisted with post-merger integration of a pharmaceutical manufacturer’s consumer healthcare operations into organization. Mapped current demand planning, supply planning and S&OP capabilities vs. best practices, and identified key areas for improvement. Developed future state S&OP process for global plants to balance worldwide supply / demand. Facilitated session among key executive personnel on required changes to on-going global SAP implementation resulting from acquisition.
o Ghirardelli Chocolate Company (Manufacturer of Premium Chocolates)
– Worked with client for almost two years. Served as Interim Director Of Logistics on two different occasions. Reduced Western Region transportation spend by $450M (16%) through use of pooling and alternate carriers. Managed transition to new Western Region 3PL provider, and resolved all start-up issues within 60 days of move. Developed / implemented vendor scorecard to track 3PL provider performance. Improved Eastern Region on-time delivery performance from < 60% to 90+%. Streamlined invoice audit / payment process.
Led RFP process to identify and select a 3PL partner to provide contract packaging, warehousing and transportation services for North America. Evaluated over 100 potential candidates. Ultimately selected an East Coast based 3PL provider with specialized expertise in confectionery packaging, warehousing and transportation.
o Sunsweet Growers (Dried Fruit and Juice Manufacturer) - Led project team that evaluated performance of company’s primary third party logistics (3PL) provider. Project focused on evaluating provider’s effectiveness in the areas of order fulfillment, customer service, transportation management, warehousing, finished goods inventory management, invoicing and accounts receivable. Identified a variety of process, policy and systems improvements that are expected to yield approximately $1MM in annual savings. Determined that remaining with 3PL provider will result in lowest total costs, while bringing these activities in-house would increase logistics expense by over $1.3MM per year.
o Axius (Supplier of Auto Accessories) - Evaluated company’s forecasting and inventory management processes. Recommended a variety of organizational, process and system changes that will improve forecast accuracy and reduce inventory levels. Projected savings from implementation of suggested improvements exceed $1.2MM annually.
o Herbalife (Large Multi-Level Marketer of Nutritional and Personal Care Products) – Led project team that assessed company’s procurement, inventory management, cost accounting, accounts payable and pricing activities. Recommended over 50 improvements based on benchmarking to “world class” best practices.
o Barth & Dreyfuss (Manufacturer of Kitchen Linens and Accessories) - Revamped firm’s inventory management policies and procedures. Determined that over 60% of inventory is either dead or excess stock. Identified root causes driving excess inventory and recommended a portfolio of process, organization and technology improvements that will permanently reduce inventory levels by $16MM.
o Coca-Cola Beverage Japan (Japanese Subsidiary of a Leading Beverage Company) – Worked with client management to develop a future state vision for the demand forecasting process. Identified organization, system and process changes needed to achieve desired vision. Solution included integrating i2 Demand Planner APS software with on-going SAP ERP project. Estimated that combined changes will improve forecast accuracy by 20%, and reduce production, transportation, and inventory carrying costs by over $25MM annually.
o Kal Kan Foods (Major Pet Food Company) - Conducted a direct shipment feasibility study for two major processing plants. Compared customer order patterns with plant production at the SKU level. Found that manufacturer could more than double direct shipments through more efficient use of existing setdown space.
High-Tech Electronics
o Seagate Technologies (Large Computer Storage Device Manufacturer) – Conducted a comprehensive re-engineering of company’s supply chain. Processes evaluated included demand / supply planning, inventory management, procurement, manufacturing, order fulfillment, transportation, warehousing, and product lifecycle management. Led
11-member project team that developed improvements to company’s demand / supply planning and inventory management activities. Solution included integrating i2 Demand Planner APS software with on-going SAP ERP project.
o Toshiba America Information Systems, PC Division (Leading North American Computer Manufacturer) - Led 20-member project team that initiated transformation of company’s supply chain operations. Project scope addressed all major supply chain activities including product design, demand / supply planning, channel management, procurement, order fulfillment, manufacturing, warehousing, transportation and returns / repair. Identified a portfolio of 12 improvement projects to be implemented over two years that will generate $880MM in NPV.
o Hewlett-Packard, Network Server Division (Server Division of a Fortune 20 High Technology Manufacturer) - Led project team that performed a current state review and future state design of the demand forecasting process. Established a portfolio of information technology, organization, and process enhancements that will improve forecast accuracy by over 50%, and reduce inventory related costs by $80MM per year.
o Hewlett-Packard, Finance and Remarketing Division (Leasing Division of a Fortune 20 High Technology Manufacturer) – Revamped client’s end-of-lease reverse logistics process. Developed an improvement portfolio of process, information technology and organizational initiatives that will reduce returns processing costs by over $5MM annually while improving customer service.
o Hewlett-Packard, Support Materials Division (Spare Parts Division of a Multinational Computer and Computer Peripherals Manufacturer) - Conducted a high level assessment of on-going in-house BPCS ERP software implementation. Developed an Oracle based “best of breed” solution that provided greater functionality, and was quicker and 50% less costly to implement than the ERP alternative.
Software
o Havas Interactive (Leading Manufacturer of Educational and Entertainment Software) - Led project team that performed a current state review and future state design of company’s forecasting and inventory management processes. Identified a portfolio of improvements that will improve forecast accuracy by 40%, reduce inventory levels by $14.4MM (66%), and reduce inventory related costs by $4.8MM annually. Team also conducted a network design to identify best location for an integrated assembly, distribution and returns facility. Determined that savings from optimal site location exceed $5.9MM annually.
o Microsoft (Leading Multinational Software Manufacturer) - Modeled SKU inventory levels required to support international sales. Determined that manufacturer could increase customer service levels from below 80% to 99+% while decreasing inventory investment through more efficient inventory management.
Telecommunications
o AT&T – Global Business Communications Systems (Leading Telecommunications Products Manufacturer) - Re-engineered organization’s supply chain. Project focused on eight key functional areas: order fulfillment, demand planning, product installation, field service and repair, distribution, manufacturing, product / process engineering and supplier management. Mapped organization’s current performance against industry best practices. Identified numerous “quick hit” and “long-term” supply chain improvement opportunities that generated $65MM in annual savings.
Led “quick hit” implementation effort in the finished goods inventory planning area. Instituted the use of custom-developed inventory planning tools taking into account such factors as replenishment lead-time, forecast error and desired service level to determine optimal inventory levels. Increased order fill-rate from 91% to 99%, while reducing inventory levels.
o Pacific Bell (Large Telecommunications Utility) - Optimized spare parts inventory for central office and field locations. Determined inventory levels required to support both maintenance and new service demand. Found that company could reduce spare parts inventory in excess of $75MM without reducing customer service performance.
Biotech
o Amgen (Leading Biotech Firm) - Led project team that recommended credit and distribution channel strategies / tactics firm could pursue to reduce its credit risk. Developed a view of the future of the wholesale pharmaceutical distribution industry over the next 5 years. Recommended enhancements to existing procedures that would reduce receivables days outstanding and bad debt write-offs by over 30%, while simultaneously allowing firm to gain more control over its supply chain.
Healthcare
o Kaiser Permanente (Major Healthcare Provider) - Transformed supply chain supporting organization’s Northern CA network of 16 regional hospitals. Implemented strategic sourcing initiative, which included shifting the bulk of medical supply purchases from 1000+ suppliers to a single distributor, and bypassing the provider’s regional distribution center. Changes resulted in a $7MM (22%) decrease in annual distribution expenses, $11MM (45%) reduction in inventory, and improved service. Led implementation of material management improvements at a pilot facility, resulting in a 69% inventory reduction.
Retail
o Wal-mart.com (Top 20 Internet Retailer) - Helped firm clarify its business strategy, identify its optimal product mix, and determine its supply chain distribution strategy.
Chemicals
o North American Chemical Company (Large Chemicals Manufacturer) – Evaluated company’s purchasing, receiving, delivery, spare parts inventory management, stock issuing, repair and obsolete stock disposition processes. Determined that spare parts inventory levels could be reduced by 10% while simultaneously improving service. Identified process improvements resulting in $2.8+MM in annual savings.
Building Products
o James Hardie (Leading Manufacturer of Building Materials for Construction Industry) - Helped company develop its e-business strategy and plan. Identified fourteen potential e-business initiatives for consideration, and facilitated client executive team reaching consensus on two most important initiatives to pursue. Developed detailed business cases and implementation plans to support initiatives chosen. Five year NPV for selected projects exceeds $8MM with 30% IRR.
