The supply chain director leading a team of 4 at this machine shop was once struggling with booming demands from the market growth and labor shortages due to increased competition for procurement talent.
His efforts in relying on premium short term contracting companies to manage workload peaks weren’t translating into ability to effectively manage all their suppliers and as a result, shortages became frequent and start to eat away their profit margins and growth effort.
The main reasons for these shortages were human related errors and communication delays between the firm and its suppliers. Small issues - PO not acknowledged, unread emails and miscommunications - were creating much bigger problems. Not having the visibility on future shortages overloaded the team with last minute battles on rectifying previous mistakes.
Furthermore, not being able to effectively communicate the changes from the ERP system to the external vendors was also creating additional long term problems as suppliers were left in the dark with no visibility on future demands.
It was clear that the company needed an all-in-one platform which would allow the procurement team to gain back control of their supply chain. And that’s when they started the trial with SIRP. With our platform, the team now have all of their open orders status updated automatically and shortages highlighted well in advance. In turn, their suppliers now also have better visibility on future demands and can optimize their production capacity planning.
The “plug-and-play” nature of the solution was important, as it didn’t want to waste much time on implementation and learning the tool.
Within one week of implementation on SiRP platform, the firm was able to keep up with the growth with the current team, reduced the number of shortages by 65% and freed up resources to drive for cost reductions.