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Case Study #3: Smooth Transitions
A $1.5 billion dollar leading provider of systems management software for stand-alone systems and enterprises came to GlobalWare with a challenge to help them reorient the way their products are produced and fulfilled in the marketplace.
Problem
The company was using multiple suppliers in the US resulting in a dispersion of inventory and inherent excess and obsolete inventory issues. All inventories needed to be consolidated at one facility - GlobalWare's Haverhill, MA plant. The transition to GWS had to be completed in 45 days so that the company could be positioned to meet traditional last month of the quarter challenges with no revenue loss. The Company had a significant in-house license management program that was being dismantled.
Solution
GlobalWare's challenge was to develop a forecasting tool to manage inventories and production, define min/max levels, consolidate and manage large numbers of documentation files, eliminate back orders, and build products in 48 hours or less for a large number of products. To offset the exposure, GWS employed an Operations' Transition team, whose entire focus was to:
- Streamline the physical introduction of the Company's products into GlobalWare's facility. And with the client help, established accurate min/max levels.
- Employ build-to-order techniques to handle large groups of inventories.
- Utilized the client's owned components to reduce the magnitude of obsolete items.
GWS completed the transition process on time with no back order issues resulting from GWS's activities.
The GWS IT team duplicated the company's licensing program, tested it, improved it and had it in a production ready state before the Transition period began. The improvement that GWS made to this system was to change the process flow of data (gang print all relevant document) and employ barcodes (reduce the possibility of incorrect licenses flowing to the wrong customers). The process reduced handling, improved efficiencies and increased the throughput, dramatically.
Result
GlobalWare reduced the Company's manpower requirement for managing the license program from 6 people
to less than 3 equivalent people and increased throughput by an estimated 20%. GWS' manufacturing systems produce and ship 94% of the company's sku's in 48 hours or less.
The Company has also reduced the manpower it used to manage its manufacturing and fulfillment business from 10 people to 5 people. Finally, all of the company's revenue targets have been made or surpassed.
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