This third-party manufacturer specializes in personal care products—from creams and toothpaste to other consumable items—and services leading consumer packaged goods (CPG) brands. Operating two FDA- and cGMP-regulated facilities within 150 miles of each other in the U.S., the company wanted to maximize its production capacity and ensure inventory and raw material processes were as efficient as possible. With demand persistently exceeding available capacity, the challenge was to schedule and synchronize complex manufacturing steps to deliver products reliably. That’s where On Time Edge stepped in to help.
The company's manufacturing process is a masterclass in mixed-mode production. It all begins with the batching stage, where customer-created recipes are mixed in large vessels or tanks. What makes this step instrumental to outcomes is that a single batch is crafted to serve multiple purposes—it’s destined to be transformed into various packaging formats, ranging from large containers to medium and small ones. This strategic approach ensures consistency in quality across product sizes and leverages economies of scale, setting the stage for streamlined production.
Once a batch is produced, it shifts to the packaging phase—a stage that demands impeccable coordination. Multiple packing lines work harmoniously to package each batch. It requires painstaking coordination to minimize waste and uphold product integrity—a reflection of the organization's unwavering commitment to operational excellence and sustainable practices.
Product mix isn’t the only complexity for this high-performance business. Every day, operations and the leadership team face complex challenges that can create havoc if not optimized properly.
Capacity utilization: With demand outstripping physical capacity, optimizing every bottleneck was essential. Although no system can build more physical capacity, the company needed a way to get the most out of what they had.
Synchronizing batching and packaging: The batching process and subsequent packaging must be aligned. A flawless schedule would mean that when a batch is produced, the corresponding packaging lines are available to complete the process efficiently.
Inventory management across sites: Operating two plants meant that raw materials and on-hand inventory needed coordinated oversight. Previously, manual processes provided for that oversight—for example, a facility might appear to have sufficient material when, in fact, the inventory was held elsewhere.
Stable and reliable scheduling: Given that many customers rely on consistent lead times rather than rapid, last-minute deliveries, a stable “frozen” schedule on the shop floor became crucial. An overly volatile schedule could disrupt logistics and the overall flow of production.
These multifaceted challenges demanded a sophisticated solution to balance supply with demand and maintain high-quality assurance standards.
The organization was eager to implement a modern application for production scheduling and enlisted the help of On Time Edge to help them transform planning and production scheduling. The effort spanned several stages to minimize complexity and deliver value incrementally, ensuring every element returned its expected impact.
Optimizing batch and order sequencing was a critical move that paved the way for smoother production flows. By leveraging their new system for demand consolidation, the company was able to merge warehouse and firm customer orders into one cohesive snapshot, allowing them to schedule production runs in a way that balances diverse demands. This convergence mitigates idle capacity and ensures that the team makes the most of every available production slot.
Their new scheduling system also supports a robust planning horizon—enabling planners to extend three, six, or even nine months into the future—which empowered the organization to foresee potential shortages, estimate maximum outputs, and strategically plan capacity enhancements well in advance. While the system couldn’t physically create additional capacity, it masterfully optimized every bottleneck in both batching and packaging operations. This meticulous approach to bottleneck utilization ensured that every stage of the process runs as efficiently as possible, ultimately driving operational excellence and laying a solid foundation for future growth.
The company's next opportunity to zero in on was preventing waste while preserving the crucial flexibility needed to respond to changing customer and market demands. To achieve this, On Time Edge provided guidance on how to leverage their scheduling system’s advanced synchronization capabilities, which seamlessly aligns the batching process with the packing operations. When packaging lines are already occupied with a scheduled batch, the system intelligently postpones the start of a new batch, eliminating the risk of producing excess product that would otherwise go to waste.
At the same time, establishing a 'frozen' scheduling span brought much-needed stability to the shop floor. This defined window minimizes last-minute changes, allowing production teams to operate with a set, reliable schedule. The frozen period provides a dependable framework for day-to-day operations while still maintaining the capacity to adjust if demand fluctuations arise, ensuring that both efficiency and adaptability are at the forefront of the company's production strategy.
The company's On Time Edge consultants helped its team maintain momentum by tackling inventory and logistics next. They showed the team how to unify data from the Mainland and Lakewood plants into a single consolidated model in their planning and scheduling system, instead of having each facility handle raw material procurement manually. This integrated inventory perspective provided a comprehensive view of resources, ensuring that all materials are visible across facilities and streamlining the entire procurement process. With this approach, the manufacturer transformed a traditionally fragmented operation into a cohesive system that supports smarter decision-making.
Building on this unified data model, the organization implemented automated transfer orders. The system now automatically detects when one facility has a surplus while the other faces shortages, enabling seamless inter-plant transfers that reduce the risk of production delays and resource misallocation. Additionally, by synchronizing production planning across two distinct but geographically nearby sites, they optimized internal logistics, such as coordinating the single truck that shuttles raw materials between plants. This comprehensive and automated approach minimizes manual errors and drives efficiency, keeping the production process agile and responsive to changing demands.
Since implementing an advanced planning and scheduling application with On Time Edge’s guidance, the organization has achieved impressive business results that directly contribute to meeting growing customer demand. By leveraging a stable scheduling methodology and robust forecasting capabilities, the company significantly improved on-time delivery rates, a critical key performance indicator that builds customer trust with reliable lead times. At the same time, synchronizing the batching and packaging operations allowed the company to optimize bottleneck utilization, resulting in enhanced production output even while maintaining constant physical capacity.
Additionally, the consolidation of raw material planning across facilities transformed inventory management by reducing manual errors and preventing materials from being misallocated between locations. This integrated approach ensured that production runs are closely aligned with available packaging capabilities, leading to reduced waste and greater operational clarity. With a clear, reliable view of future production capacity and inventory needs, this contract CPG manufacturer has built a scalable strategy that enhances day-to-day operations and paves the way for long-term strategic enhancements in response to a dynamic market.
The organization's appetite for continuous improvement hasn’t waned, so its transformation journey continues. With the next phase of advancements on the horizon, the manufacturing company is sharpening its focus by refining key performance indicators with the help of On Time Edge. Beyond tracking on-time order delivery and unit output, the company will examine the nuances between units shipped and actual order fulfillment. This detailed review is designed to fine-tune their operational strategy and ensure that every process—from production to delivery—meets the business’ high standards for efficiency and customer satisfaction.
Looking ahead, this CPG contract manufacturer is also poised to expand its digital capabilities by further automating raw material ordering and enhancing the integration of shop floor logistics. By harnessing the power of predictive scheduling and advanced inventory management within their evolving digital framework, they are driving growth and securing sustained competitive edge in the personal care products market. This clear vision and robust roadmap positions the business to meet future demand with agility and confidence, ensuring long-term success.