A manufacturer of mobile phones

Background

A supplier of 2g and 3g mobile systems that provides industry leading end-to-end system elements: infrastructure, terminals, and applications.

The Problem

The Client needed to improve their total supply chain. This effort includes material dimensioning, material replenishment, material movement, warehousing, vendor consolidation, obsolete/DMR material, quality and training.

Scope and Assignment

Synergetics utilized a team approach to involve all levels of management and employees to attack this problem from a Lean perspective. These teams developed a new replenishment process that relied upon Kan Ban concepts and a buffer warehouse to allow transition to improve vendor relations and go to a JIT environment.

The Results

A reduction in suppliers from 346 to 113 and primary suppliers from 87 to 32. We also had 40 suppliers transited to DPAs and average lead-time reduced from 87 days to 23. Obsolete material reduced to under .5% and discrepant material reduced from $1,325,000 to $83,000. Finally, Inventory turns improved from 9.9 to 15. Estimated annualized savings on the project $6 million.

Synergetics Installations Worldwide, Inc.

75 Congress Street, Suite 201 • Franklin Block Building • Portsmouth, New Hampshire 03801 • (603) 433-8940