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Serus Lean Operations for High-Tech

Delivering Intelligent Operations Management

Allows high-tech OEM's reduce manufacturing inventory, improve planning of activities, and reduce 'time to volume'.

As high-tech OEMs seek to outsource more and more manufacturing operations, they find themselves dealing with multiple trading partners who may all use varying ERP systems to keep track of data. As a result, some 60% of these OEMs still rely on complex spreadsheets to keep track of inventory and other key data, making it difficult to accurately estimate the inventory levels required to deliver product to customers on time. Intelligent Operations Management removes this need.

The Visibility Dilemma

There are challenges inherent in getting accurate data live throughout the supply chain. The OEM has difficulty getting visibility into inventory at the contract manufacturers with which it does business. The manufacturers can’t adequately assess inventory levels at component suppliers. The component suppliers, meanwhile, can’t see upstream to assess what demand will be from the OEM and the manufacturers. Without access to all that information, the OEM can’t assess which manufacturer can complete its order on time.

Now imagine a solution that allows each player in that supply chain to peer into each other’s systems. The component suppliers see the OEM has a large order in the pipeline that will need to be filled next month and stocks up accordingly. The contract manufacturer likewise gets prepped to begin churning out the order. When the order is booked, the OEM takes a look to see which of its manufacturers are ready to fulfill it and places the order accordingly. The product is delivered before the books are closed on the quarter.

The Serus Solution

The Serus Lean Operations solution offers just that kind of visibility for OEMs, contract manufacturers and component suppliers. The information integration technology used is built into the Serus Platform, which can be configured to connect systems at the OEM, manufacturer and supplier levels, providing visibility into two key components:

  • Demand collaboration, allowing visibility for component suppliers into expected demand from the OEM and contract manufacturer
  • Supply collaboration, enabling the OEM to assess supply capabilities of its contract manufacturers and component suppliers
     

The solution also analyzes customer service levels and lead times to accurately assess optimal inventory positions, reorder points and safety stock levels. It includes an automated triggering of a buy signal to component suppliers, who can accurately determine when they need to ship components to manufacturers.

The Serus Lean Operations solution comprises of the following capabilities:

  • Demand Aggregation– Allows a company to aggregate the forecast from a variety of sources. It also gives the user ability to perform what-if analysis based on the multiple algorithms available and then, pick the “best-fit”, and share it with the entities involved either within the organization or external to it.
  • Lean Planning – Provides the ability to accurately drive inventory levels (reorder points and safety stock values) based on custom definable business rules. Multiple rules can be created to address current business needs; thus providing for a quick analysis amongst them. Moreover a user can initiate a simulation on the fly for a project or region after changing some of the key parameters and evaluate the result before establishing a reorder point threshold. The result better service levels, reduced inventory liability in holding costs.
  • Lean Triggering – Ties in with the Lean Planning where the Reorder points are defined and then alerts a user to the components that need to be procured based on the current inventory levels. It also allows for sending automated buy signals against the open PO’s available and generates alerts when the required PO quantity is insufficient to cover the order quantity.

Benefits Up and Down the Chain
In short, the Serus Lean Operations platform provides OEMs with reduced inventory liability and lead times while contract manufacturers see improved margins and on-time delivery rates. Component suppliers gain increased visibility into demand and reduced inventory costs.

All parties benefit from the Serus Ecosystem, which already includes many of the leading OEMs, contract manufacturers and suppliers in the high-tech industry. Serus has already done the work to connect these suppliers to one another, so you don’t have to.

The Serus Lean Operations solution is available on a subscription basis or as a managed service.