Streamlining Supply Chains to Improve Customer Satisfaction
Challenges & Objectives
Improve customer satisfaction levels by affecting inventory levels and supply chain processes.
Strategy
Streamlining the supply chain workflow, allowing for single system visibility across the business unit process to predict product-orders and manage to the business needs.
Customized Solution
Providing a door to door solution directly to the end customer at reduced shipping cost, clearance cost and with complete visibility.
This leading Fortune 50 Company designs, manufactures and services electronic products and systems. With over 85,000 employees, they maintain more than 600 sales, support and distribution offices worldwide.
The customer's Computer Systems Group took on the task of re-engineering their supply chain. Their goal was to reduce inventory levels and improve customer satisfaction. They began by analyzing the process from point of manufacture to end user delivery in conjunction with their key suppliers.
Together with the customer, we evaluated the existing process structure throughout Asia and the South Pacific. We identified that multiple vendors were shipping parts directly to designated local distribution centers where products were then merged and delivered to the final customer.
Where duplication of effort existed, quality measures were put into place to monitor performance and assign accountability. Measurement reports were established to monitor and control delivery and cycle times. Through our Internet track and trace tool, exp.o, visibility on order status was increased allowing for inventory reduction.
Additional customs clearance fees, inventory costs and freight costs were being incurred. The approach was to streamline the process to incorporate a single provider to monitor the workflow from order to delivery.
The customer established a centralized team to develop, implement and monitor the program and Expeditors Information Systems Group provided visibility throughout the entire supply chain.
The results were clear. Products were shipped complete prior to arriving in country resulting in reduced transit time. Consistent shipping and delivery schedule by day of the week provided product order predictability. Through our centralized order processing system, electronic proof of delivery feeds and exp.o, our Internet trace and track tool, the customer achieved enterprise visibility. This allowed shipments to be delivered directly from the airport after clearing customs. This resulted in significant inventory and overhead reductions, allowing them to close their local distribution centers.
Total cost reductions exceeded $72 M based upon overall cycle time, inventory and supplier reductions. The number of service providers was reduced from 15 to 1. Customer satisfaction, monitored through our quality assurance program, increased by 50% due to improvements in delivery and transit.
Results
- Total Supply Chain Cost Reduction: $72.2 M
- Service Providers: 15 to 1