6.1Case studies
The essentials in 30 seconds
- End-to-end sourcing: challenged need, mixed CDC, qualified bidders, TCO-compared offers then contract with second source — replay the order with your figures.
- Stockout avoided: need recalculated on real lead time, immediate securing, root cause fixed then alert set so you no longer suffer.
- Transport vs inventory: mapped TCO, segmented flows, franco and routes optimised, monthly KPIs locking the gain.
Nadia thread — 1 year on: three files that still hold
One year after levels 0 to 5, Nadia re-reads her three files: packaging re-competed 70/30, the critical item saved by a reorder point recalculated on real lead time, and the pooled route that cut landed cost. The three cases below reuse her sequence: frame the need, compare at TCO, secure then steer.
Each case follows Context → Steps → Result: replay it with your own figures.
Why real-life cases?
Levels 0 to 5 laid the building blocks: need, CDC, sourcing, tendering, P2P, inventory, INCOTERMS, steering. Here they are combined in real-life situations where every decision commits cost, lead time and risk.
Each case gives its context, replayable steps and expected outcome. Re-run them with your own figures: it is the sequence that makes the method memorable.
Case 1 — Sourcing a packaging family from need to contract
Context: Food SME: 80 000 € a year in packaging with a historic single-source supplier. 9 % increase announced, lengthening lead times, no qualified alternative. Goal: re-tender without risking a stockout.
Déroulé :
- Define the right need in 5 dimensions (what: 3 formats, how many: 12 staggered deliveries, when: D+15 max, quality: food-contact standard, budget: target TCO -10 %). Challenge over-specification (thickness, printing).
- Write a mixed CDC: functional on the outcome (strength, barrier, printability) + technical only for dimensions compatible with the line. Add acceptance criteria (receipt tests, tolerances, sample).
- Source 5 candidates: 2 via the CFIA trade show, 1 network referral, 2 B2B marketplaces. Qualify in proportion to the stakes: legal existence, financial health, contacted references, samples then a small 500-unit test run.
- Tender on a common basis: same CDC, same quantities, same imposed response format, same deadline (3 weeks). Share each bidder's Q&A answers with all.
- Compare on TCO with a weighted grid fixed before opening: landed price 35 %, quality/compliance 25 %, lead time/reliability (OTIF) 20 %, service/warranty 10 %, risk 10 %. Bring every offer back to the same scope (franco, transport, tooling).
- Negotiate with the 2 best-value bidders: MOQ cut from 5 000 to 2 000, contractual 12-day lead time with penalties, material-indexed price review, 10-day buffer stock at the supplier. Choose best value, not the lowest bid.
- Put under contract: framework PO + terms (price, lead times, OTIF penalties, contingency plan, light audit). Qualify the runner-up as a 30 % source (70/30) to secure supply and keep competitive pressure.
Result: Family secured 70/30, TCO -13 % vs history, OTIF up from 68 % to 94 % in 4 months, MOQ divided by 2.5 and a penalty-backed contract protecting both sides. Archived file (CDC, offers, grid, decision) fully traceable.
Case 2 — Avoiding a stockout on a critical item with a 3-week lead time
Context: Item A: a component that stops production if missing. Current stock 320 units, average usage 45/day, measured real lead time 21 days (not the 14 announced). One order is late, stockout risk within 7 days.
Déroulé :
- Calculate the real need: daily demand 45 × 21 d = 945 + safety stock (standard deviation × z for a 98 % service rate). The reorder point was under-calibrated because it used the catalogue lead time.
- Trigger the emergency plan: alert production and sales, reschedule the MPS, chase the supplier with written confirmation, cost the express option (fast transport vs shutdown cost).
- Secure the short term: bring in 150 units from a secondary depot, inter-site loan, spot order with the already qualified second source (even at +12 % on price, the stockout TCO is far higher).
- Fix the root cause: recalculate the reorder point on real lead time (21 d) + variability, raise safety stock only on critical items (ABC: A = high cover, C = lean), switch to daily tracking.
- Set up the alert: warning threshold at reorder point + 20 %, shared OTIF and delays board, attach the item to a pre-qualified 70/30 dual source.
- Close cleanly in P2P: checked receipt against the delivery note (quantity count, written reservations if gap), three-way PO/delivery-note/invoice match before payment, photo of defects, same-day supplier notification.
Result: Stockout avoided, production kept running. New reorder point + safety stock documented, supplier OTIF tracked monthly, second source activated. Emergency cost 1 200 € vs an estimated 18 000 € shutdown: TCO proven.
Case 3 — Cutting logistics cost without harming customer service
Context: Regional distributor: 40 deliveries/week, 800 € supplier franco threshold missed one time in two, transport billed trip by trip, 89 % customer service rate (OTIF). Management wants -15 % logistics cost with no OTIF loss.
Déroulé :
- Map the current logistics TCO: purchase price + transport + customs + warehousing (sqm, rotation) + non-quality (delays, credits). Measure end-to-end lead time (order → available) and real OTIF from suppliers and to customers.
- Segment flows: ABC on margin and criticality, XYZ on demand regularity. Regular A/X move to push flow with buffer stock, irregular C/Z stay on pull.
- Renegotiate transport: consolidate orders to hit franco (move from 2 to 1 weekly order with shared forecast), transport tender on clarified INCOTERMS (move from EXW to delivered DAP), compare 3 carriers on identical scope with a weighted grid.
- Optimise warehousing: recalculate economic order quantity including holding cost vs ordering cost, cut negotiated MOQ from 3 000 to 1 200 on 2 families, free 25 sqm. Set up a pooled round with a non-competing peer.
- Steer by KPIs: monthly board with supplier OTIF, customer OTIF, stock rotation, logistics cost per kg delivered, disputes/month. Share 4-week forecasts with key suppliers to smooth the bullwhip effect.
- Check the result: logistics cost -17 % like-for-like, customer OTIF up to 95 %, average stock -22 % on A items. Document the new set-up (who orders, when, how) to make it replayable.
Result: Target beaten (-17 %) with better service (95 % OTIF). Transport/inventory trade-off settled on TCO, franco hit on 92 % of orders, lighter warehousing and monthly KPIs locking in the gain.
Ready-to-say script — propose a replayable sourcing (2 min)
"We replay the guide method on this family: challenged need, written CDC, 3 to 5 offers at identical scope compared at TCO, then contract with second source. We trace each step so it can be redone."
Say before consulting: it locks the method before prices.
Copy-paste template — replayable file sheet
FAMILY / ITEM: ...
Challenged NEED (what, how many, when, quality, budget): ...
CDC + acceptance criteria: ...
Offers compared at TCO (identical scope): ...
Traced DECISION (best value, 70/30 if critical): ...
FOLLOW-UP (OTIF, inventory, disputes) reviewed on: ...Small business / tight budget
One case at a time, on spreadsheet: 5-line need, 3 offers compared landed, decision noted in one sentence.
Algeria SME
Include actual lead times seen (port, clearance, wilaya) and payment circuit in each file: TCO is played there as much as on price.
Import / distant
Add an INCOTERMS + customs + currency-risk line to the file: compare only offers landed at the same point.
Multi-site
Duplicate the sheet per site then consolidate: grouped volumes for franco, thresholds adapted to each local consumption.
48h challenge — apply tomorrow
Take 1 real family or item and write its file in 5 lines (need → CDC → TCO offers → decision → follow-up). Start the 1st line this week.
- I can chain need, CDC, TCO and contract on a real case.
- I have a replayable file sheet for my next consultation.
- I did the 48h challenge or scheduled its date.
Nadia re-tenders her packaging: which sequence follows the guide method?