Case Study - Solutions in Multiple Business Areas for a Large OEM
The Challenge
Our client is one of the world's leading computer system companies and a premier provider of products and services required for building information technology and Internet infrastructures. They manufacture and customise products to customer requirements and offer an extensive range of software and peripherals. Over the past number of years the company has grown significantly. Their own drive for efficiency has resulted in them outsourcing many resource draining activities.
SerCom's stellar performance for this client in existing business areas has provided the opportunity to win new business in a diverse range of activities. Historically, these activities typically caused issues internally as they are outside of mainstream businesses. The challenge for SerCom was to become familiar with the wide variety of parameters and processes, as well as seamlessly integrate these activities into their current portfolio to reliably deliver cost and efficiency improvements to the client in a high velocity, high growth context.
SerCom's Solution
Spares Management: SerCom is responsible for the supply of all spare parts within the EMEA (Europe, Middle East, Africa) region to facilitate a 5 year warranty which our client provides to its customers. Over 4,000 part numbers are involved and these are sourced with hundreds of suppliers worldwide. Spares can be complex and subjected to last time buy scenarios and erratic demands. Designated SerCom personnel are involved in our client's lifecycle processes in order to initiate new parts into the spares programme. The client in turn provides stock holding quantities to SerCom based on their field population. The inventory is consigned to the client's 3PL and SerCom staff review and replenish stock levels on a daily basis. A Hot Order process is in place to facilitate urgent demands from our client's key customers and this process requires same day replenishment. SerCom is measured by a range of metrics which include Open Calls (measured in days), adherence to required stock levels and response to Hot Orders and our performance level has been very high over an extended period of time. This is borne out by the longevity of this business which has been managed by SerCom on behalf of our client, since 1999.
Customised order sourcing: Our client has a number of Class A large corporate customers. A large proportion of these customers have very specific system and software requirements. SerCom was awarded the business to source and provide quotations for these clients' individual requirements. The tendering process, which is required to provide these clients with a cost estimate, demands that we respond with pricing and availability within 24 hours. We source samples to facilitate our client for integration testing in advance of first customer ship. We then order and supply the specified parts. Over the years, we have developed a preferred range of suppliers (and, where appropriate, distributors) who are accustomed to the unusual demand patterns and spikes that are caused by large order downloads. However, there are naturally one-off deals as well as sporadic order requirements. In such cases, we may have to deal with a supplier or distributor only once or, at best, on rare occasions. SerCom has to ensure that we get optimum performance from such a supply base. Again, the client has given us excellent feedback as to how this business (with SerCom since 1999) is managed. Our client has full visibility of our orders, and expected delivery dates which allows them visibility to plan their customised builds.
The Results
SerComs indepth knowledge of our client's business and personnel has facilitated smooth transitions of these activities from an internal scenario to external (SerCom) management and control. Quarterly ranking from this client for all SerCom activities has consistently exceeded 90%. SerCom individuals managing these particular businesses have been officially recognised as outstanding performers by the client. Excellent turnaround times coupled with a reduced cost base have been the key deliverables of these programmes over an extended period of time.