Sourcing & manufacturing materials management control tower

Challenge

This global telecommunications and networking equipment manufacturer’s supply chain managers struggled to match upstream purchase order releases with production schedules across its network of contract manufacturers and the ever changing priorities of the powerful sales organizations within the regions. Faced with both high parts inventories and missed delivery commitments, the company sought to redefine its sales and operations planning process with visibility, data analytics and decision support.

Approach

• Opportunity assessment: Clarified the organizational goals, benchmarked performance vs. peer group competitors, and set aspirational time-phased performance targets.
• Model conceptualization: Leveraging cross-industry best practices, developed the operating model consisting of a core, centralized information hub, powered by data visualization and optimization tied to the suppliers, contract manufacturers and the sales regions.
• Conference room pilot: Established the conceptual model with off-the-shelf tools and simulated data representing the challenges faced by the supply chain managers.
• Operating model fine-tuning: Based on the conference room pilot, iteratively tested and refined the solution and the business application specifications required to operationalize the solution design.
• Implementation plan: Specified the resources, timing, technology platforms, risks and mitigations, and supply chain partner integration and training requirements.

Results

• A redefined S&OP planning process tailored to the company’s unique supply chain, product and demand characteristics.
• An information-enabled control tower to reduce surplus parts supplies, increase contract manufacture productivity, and increase performance against the production and delivery schedules.