Case Study - JIT Supply to Multiple Site Locations in the USA
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. Operating from multiple manufacturing locations in the USA, they manufacture and customise products to customer requirements and offer an extensive range of software and peripherals.
The challenge was to consolidate the offering across all sites from ourselves, to consistently provide accessory kit support to three key locations, and to optimise and balance component inventory levels as appropriate. The initial plan was to go live with the three sites over a six week period, SerCom was then asked to compress this to three weeks within days of Go-Live and this was successfully achieved.
SerCom's Solution
SerCom immediately engaged with the existing suppliers to establish inventory coverage and appropriate liabilities. Our personnel have extensive experience with these types of transitions and smoothly managed this process.
Forecasts, kanban levels and replenishment quantities were established with our client and these, coupled with the BOM and inventory information, were used to drive MRP on our mySAP system. P.O.s were placed with new suppliers and potential shortages were highlighted and immediately expedited.
Production lines were established in each of our 3PL partner's locations, which are located in close proximity to the client's facilities. SerCom personnel quickly launched a detailed training plan and set up a project team to manage this process on the ground across the three sites throughout the Go Live period. It is interesting to note that Go Live on the first site, took place three weeks after the business award.
Forecasting, planning, procurement and inventory activities are all managed by SerCom, while near site production and logistics activity is successfully managed by our 3PL partner. The solution is provided to the client in an integrated manner. This is only one of a number of clients that SerCom and our 3PL partner jointly service and feedback on our performance has been excellent. Within the first year, we have been awarded substantial levels of additional business.
The Results
- Smooth transition to a single partner consistently supporting three locations - no shipments missed since go live
- Utilisation of existing infrastructure and business experience resulted in a very cost effective solution for our client
- Client's compressed transition lead time was achieved
- Ongoing outstanding performance against customer's KPIs (Key Performance Indicators)