Case Study:
Driving Efficiencies through Supply Chain
Re-engineering
Our client, a division of a $17B US-based conglomerate, has designed and produced underwater sensors for worldwide military use for over sixty years. With over 1,000 employees, sales were traditionally driven by cutting edge design and superior performance of its products.
However, in recent years, the focus of defense procurement requirements had shifted from best performance to best value. Realizing that its future depended greatly on streamlining business processes, the organization undertook a global systems evaluation and analysis.
The Challenge.
As a result of its assessments, the company decided to concentrate its energies on two areas: re-engineering the supply chain, and replacement of the antiquated business system with new enterprise software. Given the unique operational requirements of the products and the classified nature of the work, it was critical for the company to select the right partner for this business transformation.
The Solution.
Animato tailored its approach and enterprise solution to meet the specific demands of our client environment and culture. Some of the customized project management elements were:
- Creation of two separate teams, one for each focal point of change
- Appointment of a high-level program manager to oversee both projects, ensuring alignment and coordination
- Guidance in the selection of new enterprise software
- Hands-on support in supply chain reengineering efforts
- Identification of knowledge gaps within the two areas and requisite training programs to close these gaps
- Development of aggressive-yet-realistic schedules, meaningful metrics and action plans for the individual teams
The Results.
- With the new business systems in place and a significant increase in the supply chain efficiency, the company was able to eliminate 30% of its processing steps and 70% of documentation.
- Eliminating paper-based instructions reduced management costs by 80% and helped launch real-time automated process controls.
- The average turn-around for repair work dropped from 240 days to less than 30 days. As a result, inventory velocity increased from 2.1 to 10.5 turns.
- Inventory decreased 75% and freed up enough production space to eliminate the need for a previously planned multi-million dollar facility expansion.
- Ultimately, lower product costs and shorter delivery times resulted in a doubling of their revenues.
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Industry
Military
Manufacturing
Functional Application
Supply Chain
Animato Solution
Project Execution
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