Having information and processes trapped in operational silos is a continuing problem that keeps many businesses from performing as well as they should, says Paul Boris, vice president of collaborative manufacturing at SAP, in an interview with Greg Gorbach, vice president-collaborative manufacturing, ARC Advisory Group
Challenge: Our client manufactures six different varieties of transmissions totaling more than one million units per year for several global automotive brands. Serving their broadly dispersed and diverse customer base requires the constant movement of many different parts to the assembly area, which must be well orchestrated to avoid delays associated with excess movement, or the cost associated with storing excess work-in-process inventory.
Challenge: In the construction equipment industry, service parts availability is critical. Before working with Syncron, our client's dealer supply chain was fragmented with each dealer being responsible for their own inventory management. It was difficult for our client to get visibility or control of the supply chain to ensure high service levels for their end-customers, with inventory overstocking, obsolescence and emergency orders creating huge unnecessary costs.
Challenge: Our client is a Fortune 500 company that serves as the world's largest supplier of pumps and systems. With over 40,000 employees in 60 countries, the $10. 9 billion company ships their products worldwide to customers. All company locations had their own decision making ability to choose their own transportation provider. In 2009, there were over 400 freight forwarders used worldwide for ocean and air shipments.
Challenge: Our customer manufactures and distributes private label hand tools and related products which are sold at Home Depot, Lowes, Menards, and Pep Boys, among others. In 2009, our customer decided to expand visibility to in-store inventories and improve forecasting and customer service.
Challenge: As fuel costs, highway congestion and environmental consciousness skyrocket, building a supply chain network that factors in a variety of transportation modes to minimize costs and carbon footprint is critical.
Challenge: A manufacturer of high precision machined components was unable to meet the stocking requirements of their largest customer. Though their customer had placed their supply management system online their constant changing of requirements made it difficult for the company to keep pace. Their first option was to create a series of complex spreadsheets to help manage the data. Unfortunately, that process required nearly two hours a day to prepare and despite their efforts stock-outs increased to nearly 50% of managed SKU's.
Challenge: When a top-tier mobile hydraulics company engaged DemandPoint, they needed to dramatically improve their on time orders to remain competitive in their market.
Challenge: Key inventory planning personnel retired from a parts manufacturer for heavy duty vehicles, and the resulting experience/knowledge void led to costly inventory mistakes. Because the company's cash was tied up in the wrong inventory, its ability to stock the needed products was limited. Over two years, the company launched a new S&OP process to correct its inventory and cash problems.
The market for RFID transponders, readers, software and services will generate $70.5bn from 2012 to the end of 2017. The market was boosted by a growth of $900m in 2011 and the market is expected to grow 20 percent year over year per annum. Government, retail, and transportation and logistics have been identified as the most valuable sectors, accounting for 60 percent of accumulated revenue over the next five years.