Case Study Company

Veridian Manufacturing

A mid-sized industrial equipment manufacturer facing the challenges of global growth, supply chain complexity, and digital transformation.

$450M

Annual Revenue

2,800

Employees

Manufacturing Plants

35+

Countries Served

Michigan HQ

Texas Plant

Mexico Plant

Germany Plant

Products & Markets

Product Lines

Industrial pumps and compressors
Material handling equipment
Custom automation solutions
Replacement parts and service

Key Markets

Oil & Gas (35% of revenue)
Manufacturing (30% of revenue)
Mining (20% of revenue)
Other industries (15% of revenue)

Supply Chain Overview

Supplier Base

200+ active suppliers globally
Key components from Asia (40%)
Regional suppliers for bulky items

Distribution

3 regional distribution centers
Direct ship for large equipment
Dealer network in 35+ countries

Current Challenges

These are the supply chain challenges you will help Veridian solve throughout the course

Demand Variability

15% excess inventory cost

Seasonal fluctuations and unpredictable customer orders make forecasting difficult, leading to either excess inventory or stockouts.

Long Supplier Lead Times

12 week avg lead time

Key components from Asian suppliers have 8-12 week lead times, reducing flexibility to respond to demand changes.

Multi-Plant Coordination

18% capacity imbalance

Balancing production across 4 plants with different capabilities and cost structures is complex.

Inventory Investment

$28M in inventory

High inventory levels tie up working capital, but stockouts damage customer relationships.

Leadership Team

The key stakeholders involved in supply chain decisions

Sales

Sarah Chen

Customer relationships and revenue growth

Operations

Michael Torres

Manufacturing efficiency and quality

Supply Chain

Jennifer Walsh

Planning and procurement

Finance

David Kim

Cost control and profitability

Company History

1987

Founded in Michigan as a small machine shop

1995

Expanded into industrial equipment manufacturing

2005

Opened second plant in Texas

2012

International expansion - plants in Mexico and Germany

2020

Digital transformation initiative launched

2024

S&OP implementation project begins

Current Strategic Initiative: S&OP Implementation

Veridian is implementing a formal Sales and Operations Planning process to improve demand-supply alignment, reduce inventory costs, and better serve customers. Throughout the CPIM curriculum, you will apply concepts to help Veridian achieve these goals.

15%

Target inventory reduction

95%

Target forecast accuracy

98%

Target on-time delivery

Explore Related Content Areas

Supply Chain Strategy

Align supply chain with business strategy

Sales and Operations Planning

Balance supply and demand effectively

Demand

Forecast and manage customer demand

Supply

Develop supply strategies and capacity planning

Detailed Schedules

Master scheduling and execution

Inventory

Optimize inventory investment