Outsourcing Supply Chain Management Case Study Example

Outsourcing Supply Chain Management Case Study Example

At FGS our experienced team of supply chain professionals will analyse your current materials supply chain process, manufacturing locations and distribution network.

With your politic goals in mind we will then use our proprietary supply chain simulation software tool to finish the optimal locus of manufacturing / distribution sites based on regional differences in labour costs, geographical proximity to major markets, land costs, taxes and utilities.

We will then evaluate from amongst the various logistics strategies to fix upon the optimal balance between the requirements for higher end customer enjoyment levels, performance improvements and implementation costs for you in
Outsourcing supply chain management function.

Business Challenges - Outsourcing supply chain management

As a world - illustrious consumer - digital brand leaders business expanded into multiple product commodities, each of their products business units developed their own individual supply chain management strategies. Significant administration resources were therefore required to manage multiple suppliers and oversee the product flow, materials supply chain management and istribution activity. Movement of materials beween multiple distribution nodes more increasing costs and complexity to the customers supply chain model. In this mingled structure the bundling of products across product commodities proved very difficult, with ever increasing distribution costs and durable customer demands for preferred service a more efficient solution was required.

Outsourcing supply chain management - Client Requirements

* Stony global supply chain distribution network with reduced overall costs

* Globally agnate distribution management processes and systems

* Leveraging of logistics capabilities and costs across business units

* End - to - end product management, including cost, planning, delectation and delivery, from plant to customer

* Ingenuous supply chain solution allowing ease of regional appearance and returns

* Turnkey supply chain management of materials by service provider

* Significant improvements in on - time delivery

Outsourcing supply chain management - FGS Solution

* Designed centralized distribution network regionally ( one limelight in US, EU and Asia ) with minimum order turn around time to all major markets

* Global product planning and delivery

* Streamlined global processes with coextensive reporting systems

* Turnkey outbound gratification management from factory to customer

* Management of multiple financial influence and materials management models from SMI, consigned, customer - owned and FGS - owned

* Ingenuous IDL models in support of multiple business units

* On - vivacity, collaborative, activity - based efficiency programmes delivering continuous improvements and driving down costs

Outsourcing supply chain management - Results

* Reduced global supply chain distribution nodes from 11 to 3

* Amassed on time delivery from low 90s to 99. 5 % resulting in more levels of end - customer fulfilment ratings

* Reduced invoicing activity by up to 65 % delivered significant savings in administration costs

* Management of multi - channel supply chain network which includes retail, distribution and direct to customer solutions

* Reduced register balancing between locations delivered aggrandized list spread, efficiencies, and visibility to product in all locations

* Utilization of FGS near footing and off stay low cost facilities delivered a 20 % reduction in service costs

* Rapid positioning of material for spot promotions and marked configurations also by the elimination of inter - core transfers

* Consolidation of supply chain network delivered a 50 % reduction in the customers requirement for business unit administration support staff across all regions

Flextronics Global Services ( FGS ) is a tactical business unit of Flextronics and one of the most cherished global providers of post manufacturing supply chain logistics services. Our comprehensive suite of aftermarket services are fully optimized to the specific requirements of our customers operating within the computing, consumer digital, infrastructure, industrial, animated and medical markets.

Our expansive global infrastructure consists of over 20 sites and 14, 000 employees strategically located across 17 countries throughout the Americas, Europe and Asia where we excel at Outsourcing supply chain management services.