Executive Summary
A leading EMS company faced significant challenges in their supply chain, including manual processes and high transactional costs. TTI implemented a comprehensive solution involving automation, economic order quantities, and optimized material flow. The result enhanced the company’s operational efficiency and profitability while reducing process costs by €51,000 per year.
The Company
This prominent Electronics Manufacturing Services (EMS) provider specializes in delivering end-to-end growth capabilities and solutions to technology companies. Their high-quality services utilize the latest technology at competitive prices with a mission to respond to their customer’s needs with speed, agility, and a proactive attitude.
The Challenge
The customer was confronted with a multitude of supply chain challenges. Predominantly manual processes in planning, purchasing, and goods-in led to significant inefficiencies. The absence of an automated logistics solution further compounded their troubles and escalated costs. The existing supply chain demonstrated a lack of flexibility, proving inadequate in adapting to fluctuating demands. These challenges collectively underscored the need for a comprehensive analysis of the customer's supply chain logistics programs.
Solution
In concluding the assessment, four key initiatives were identified to help the customer solve these issues:
- Conduct a supply chain check, FMEA, Muda check; and part portfolio analysis to diagnose and set the path for future improvements
- Implement a replenishment strategy at the part number level to automate and optimize information flow
- Utilize economic order quantity calculations and an automated quoting tool to streamline procurement
- Introduce pre-receiving for C-parts to make the physical material flow as lean as possible
Results
- Automation and optimized material flow improved operational efficiency
- Process costs reduced by €51,000 per year
- Setup intelligent dynamic buffer to ensure availability
- The supply chain is more adaptable to changing demands, reducing competitive vulnerabilities