Challenge
One of the most innovative and respected manufacturers of data and voice networking components experienced explosive growth through a series of acquisitions. Business operations became increasingly complex as new suppliers and processes were forced together, clouding material and demand forecasts. Packaging presented a specific challenge, as each acquired product family retained its own packaging specifications, unique box designs, artwork, and documentation requirements. When obsolescence reached 16%, the company recognized the need to streamline and standardize their global supply chain.
Solution
GlobalWare Solutions formed a project management team to work collaboratively with the client toward clear, results-oriented goals:
- Standardize packaging requirements
- Standardize ordering functions and processes
- Shorten release cycles
- Reduce production and lead times
- Decrease obsolescence
GlobalWare teamed with the client’s Product Managers to consolidate and re-engineer packaging, artwork, and documentation across multiple product lines. In conjunction with standardized packaging, GlobalWare hosted direct shipping services for the products, empowering the client’s global network of external manufacturers to control inventory by ordering smaller quantities at increased frequencies. Finally, the implementation of a Build-to-Order manufacturing model streamlined lower volume “short-run” projects such as new product introductions, betas, and end-of-life products.
Result
The client experienced dramatic results in its first year of partnership with GlobalWare:
- Inventory obsolescence was reduced from 16% to 1%
- Annual inventory turns increased from 3 to 12
- Release cycles were reduced from 15 days to 5 days
- 66% reduction in reprint cycle times
GlobalWare Solutions has received positive recognition as one of the top suppliers for this company.
Testimonial
“Thank you and your team very much - you helped turn a difficult and critical situation into a revenue win without service impact…I appreciate the extra efforts you and your team put forth to make this happen.”
Supply Management Leader
