Executive Summary
An engineering and manufacturing service provider’s legacy, manual processes were creating significant cost and hindering efficiency. A detailed supply chain assessment conducted by TTI showed that an automated replenishment, streamlined KPI controls and an improved process management system would exceed the company’s performance goals, improve the stability of its supply chain and result in over €80.000 in annual cost reductions.
The Company
As an over 50-year-old company with 3,000 employees globally, this contract manufacturer was facing challenges in profitable growth despite their position as an industry leader and innovator in the semiconductor, connectivity and smart mobility sectors.
The Challenge
To determine an effective strategy, TTI processed a comprehensive and collaborative supply chain assessment to observe the current material and information flow processes. The assessment identified several cumbersome processes and an overall dissatisfaction with the level of process efficiency that resulted in high transactional cost and poor internal throughput.
Solution
In concluding the assessment, four key initiatives were identified to achieve the greatest short-term impact:
- Setup a program for automated replenishment
- Setup a collaborative program for Muda management
- Implement supply chain risk management based on BoM analysis
- Setup a dashboard with KPIs to ensure continuous improvement
Results
- Reduction of transactional cost of €80,000
- Reduction of processing times in receiving
- Reduction of exception management
- Improved availability of components