Cooperation with suppliers freed up substantial working capital
When we started the project with this Global Automotive customer, the main
targets was to reduce both inventory and lead times while improving
service levels. The investment paid off in less than a year and today,
substantial working capital previously tied up in stock has been freed.
Meanwhile, lead times has been heavily reduced and inbound deliveries are
in the right quantity, when needed. To achieve these results, a new way of
working globally was adopted and a network for collaboration with
suppliers was created. The Network had a common goal: to create flexible
and quick responding flows of goods with high visibility. With the help
from PipeChain to control the flow and using PipeChain Replenishment
Engine to calculate delivery suggestions and schedules, global planning
and monitoring have become a success.
The project started with selected suppliers at a couple of pilot sites. The success in these sites resulted in continued roll-out of the solution globally. The globality is a key element of PipeChain and in this specific case several suppliers of components are active in all countries where communication can be performed with one voice instead of having a channel in each country.
The installation was easy in, and the cooperation between this customer and PipeChain worked smoothly. Suppliers are running PipeChain’s web based solution. This has contributed to a very positive response from the suppliers, whom has not had to invest a penny in order to introduce the new approach. For the purchasing department the change has been positive as well, since their jobs have become more global and proactive. They can now focus their daily work on deviations and relationship building with suppliers.
The project started with selected suppliers at a couple of pilot sites. The success in these sites resulted in continued roll-out of the solution globally. The globality is a key element of PipeChain and in this specific case several suppliers of components are active in all countries where communication can be performed with one voice instead of having a channel in each country.
Positive response from suppliers
The installation was easy in, and the cooperation between this customer and PipeChain worked smoothly. Suppliers are running PipeChain’s web based solution. This has contributed to a very positive response from the suppliers, whom has not had to invest a penny in order to introduce the new approach. For the purchasing department the change has been positive as well, since their jobs have become more global and proactive. They can now focus their daily work on deviations and relationship building with suppliers.