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 skilful goals in mind we will then use our proprietary supply chain simulation software tool to tap the optimal footing 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 resolve the optimal balance between the requirements for higher end customer pleasure levels, performance improvements and implementation costs for you in
Outsourcing supply chain management function.

Business Challenges - Outsourcing supply chain management

As a world - famous 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 then required to manage multiple suppliers and oversee the product flow, materials supply chain management and istribution activity. Movement of materials beween multiple distribution nodes farther increasing costs and complexity to the customers supply chain model. In this complex structure the bundling of products across product produce proved very difficult, with ever increasing distribution costs and surviving customer demands for more suitable service a more efficient solution was required.

Outsourcing supply chain management - Client Requirements

* Unyielding global supply chain distribution network with reduced overall costs

* Globally analogous distribution management processes and systems

* Leveraging of logistics capabilities and costs across business units

* End - to - end product management, including cost, planning, glee and delivery, from works to customer

* Ready supply chain solution allowing ease of regional fashion 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 hub in US, EU and Asia ) with minimum order turn around time to all major markets

* Global product planning and delivery

* Streamlined global processes with same reporting systems

* Turnkey outbound rapture management from works to customer

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

* Conversant IDL models in support of multiple business units

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

Outsourcing supply chain management - Results

* Reduced global supply chain distribution nodes from 11 to 3

* Heavier on time delivery from low 90s to 99. 5 % resulting in innumerable levels of end - customer gratification 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 another register swell, efficiencies, and visibility to product in all locations

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

* Rapid positioning of material for spot promotions and earmarked configurations massed by the elimination of inter - locus 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 shrewd business unit of Flextronics and one of the most held dear 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, motile 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.