Enabling Supply Chain Collaboration
Background:
WWT: World Wide Technology, a 1.8B company, is a value added reseller (VAR) of IT products and supply chain outsourcing solutions in the commercial, government and telecom sectors. It not only uses the sophisticated Enterprise Resource Planning (ERP) system and electronic procurement and logistics (e-PL) capabilities, but also WWT partners with other consulting firms, OEMs and business process outsourcing companies to generate business opportunities.
ClearOrbit: ClearOrbit, as a supply chain execution company, integrates company specific ERP functionality supporting the complete product flow from manufacturing & inventory management to warehouse labeling & shipping.
Situation:
WWT and one of its consulting firms had signed an agreement with a large automotive Original Equipment Manufacturer (OEM) to outsource the entire MRO sourcing and purchasing operations and to manage the vendor relationship in order to reduce the spend. The plan of action is to strategically reduce the number of suppliers and integrate the automation process with those suppliers.
Before: The consulting firm targeted the OEM for this proposal because it identified the following issues in the OEM’s MRO purchasing system: large supply base with 1,800 vendors, excessive number of employees at different levels: purchasing group, store, plant and HR, and unofficial communications between vendors and OEM plant managers. The most inefficient and time consuming factor was exchanging all the information and data in the form of hard copy documents and EDIs.
After: The consulting firm identified the suppliers with strong technical capabilities resulting into 300 suppliers. WWT integrated the automated purchasing process with the 300 suppliers in order to maximize and maintain the accuracy of business parameters around the cost-effective process of PO and invoice management. It minimized the human interaction that helped