Case Study
Leading memory and storage producer optimizes finish-to-order solution
OUR CLIENT:
Our client is a worldwide leader of data memory and storage solutions employing more than 40,000 team members in 17 countries.
THE CHALLENGE:
Low forecast accuracy requires last-minute product customization
At the time of engagement the client was struggling with a number of late-stage, customer requested product customization options. The client’s demand-planning team struggled to create forecasts for customized options, resulting in below industry average demand accuracy and inventory levels.
To meet customer fulfillment expectations, products were pulled off warehouse shelves at the last minute for rework. While an enterprise resource planning system was in place, the operations teams could only execute the finishing instructions based on a weekly supply and demand reset process rather than a real-time assessment strategy.
THE TRANSFORMATION:
New finish-to-order solution enables real-time volume planning and assessment
The UST team leveraged the client’s existing ERP system (with recently upgraded to SAP HANA database technology) to design, develop, and implement a new finish-to-order solution, which could mine new data sources in real time and provide the right signals to the manufacturing floor. UST provided end-to-end training, testing, and support for the client in utilizing the solution.
Instead of executing weekly goals, their system now did a real-time assessment of the stock on hand and its finishing attributes as well as a comparison to the sales orders for the following week. Any sales orders without a match were read by the manufacturing operations team and specific finishing instructions inserted. Every time the execution system asked for a new finishing instruction, the system leveraged the speed of the HANA platform to run the analysis again to ensure accurate volume planning.
THE IMPACT:
Increased forecast accuracy and a significant reduction in required product reworking
New finish-to-order processes and supporting HANA-based technology reduced the percentage of product batches requiring rework by a factor of 5 (from 10% to 2%), creating significant operational cost savings. With their new customized product batch matching process, the client now experiences fewer delivery delays and has increased their overall process efficiency.
EXPERTISE & RESOURCES
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Digital Transformation Services | Digital Technology Solutions - UST