Executive Summary
Optimizing costs and being able to respond to rapidly changing market conditions led this global electronics manufacturing company to a TTI supply chain analysis and solution. Applying the recommendations from that assessment created annualized savings of €270,000.
The Company
A well-established global electronics manufacturing services company with 1,940 employees and €257M in revenues utilizes multiple processes to produce PCB assemblies and complete products. The company serves power tools, small appliances, IoT, medical, and other markets.
The Challenge
The customer needed to react to changing market demands with agility while maintaining a lean, efficient supply chain with cost-optimized processes and constant availability. Their challenges included time-consuming exception management, manual material flow processes, and inaccurate forecasting that led to underconsumption.
Solution
In concluding the assessment, six key initiatives were identified to achieve the greatest short-term impact:
- Optimize purchasing process and forecast generation
- Improve physical material flow
- Categorize parts for spot orders, Just-In-Time and consignment ordering systems
- Calculate minimum and safety stock levels
- Establish a delivery plan program
- Defined economic order quantities and value-added services for shipping and receiving
Results
- Annual savings of €40,000 by reducing exception handling in purchasing
- Optimized economic order quantities saved over €220,000
- Lean receiving processes save €10,000 yearly