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Efficiency & Profitability Support

Our Tactical Process Analysis, Engineering Support and Lean Practices Support are key to our ability to contribute to your improved ROI through cost savings and higher productivity, improved operating efficiency, reduced carrying and handling costs, reduced working capital and reduced workforce requirements.

Tactical Process Analysis

Our Tactical Process Analysis provides a consultative approach to identify and drive improvement in the total cost of acquiring a customer’s class "C" components. In its simplest form our team focuses on reducing time, transactions (labor), inventory and space allowing our partners to increase their efficiencies and ultimately improving their profitability. Although our global and world class ability to procure and deliver anywhere in the world at competitive prices is second to none, our value proposition comes alive when combined with the often double-digit savings achieved through our Tactical Process Analysis.

Our process includes:

  • Tactical Process Analysis: Creating a flow chart that articulates every step of a company’s supply delivery, procurement, shipping, receiving, inspection, storage, drop zones, etc., looking for practical and effective ways to reduce costs. In some cases – many, in fact – what we see is a complicated and inefficient system with opportunity to simplify and streamline. Once we map the replenishment process, we recommend a completely actionable streamlined process that results in time and labor savings. This process allows us to demonstrate our understanding of your current program and to show the simplification of your process through our proposed and simplified solution. With experience in more than 100 industries; expertise in nearly every inventory management discipline; use of advanced and emerging technologies, and a singularly connected global infrastructure, only Supply Technologies has the intellectual and technological infrastructure to give you a program of process, resource, and production efficiencies that improve your competitive position in the marketplace.
  • Cost Comparison Chart. After we identify the potential efficiencies we could provide by eliminating steps, our team will quantify the benefit of this exercise creating a powerful value proposition.  We do this by comparing our partners' current costs of handling this commodity to the improved costs they would benefit from utilizing our on-floor solution, outlining where the customer can benefit by adopting our recommended process.
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Our recommendation resulted in significant changes:

Previous Process          Recommended Process
Multiple vendors One vendor
Separate purchase orders/shipment One purchase order
Increased # of invoices Summary invoice per month
Increased receiving costs Reduced freight
Increased receiving inspection Reduced warehouse space
Increased freight Certified inspection
Increased warehouse space Electronic replenishment
Increased carrying charge Optimal inventory levels
Transactions (need discussion)  

Before and After Cost Comparison:

DescriptionCustomer's Current Annual CostSupply Technologies VMI Annual CostAnnual Savings
Purchasing administration $50,000 $5,000 $45,000
Warehouse labor $30,968 $0 $30,968
Plant material handlers $18,000 $0 $18,000
Purchase orders $62,510 $35 $62,475
Payables/accounting $26,610 $180 $26,610
Freight & warehouse space  $203,150  $62,700 $140,450
Inventory carrying  $117,631  $0 $117,631
IT/purchasing system  $24,000  $0 $24,000
TOTAL  $533,490  $67,915 $465,134


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Technical Services:
Relentlessly Pursuing Technical Perfection

The pursuit of technical perfection is nowhere more important than in the quality assurance, engineering and testing of the billions of parts and materials we supply every year to our customers.

It is what drives us to continually seek out better and more efficient methods of enabling you to build the highest quality end use products at the lowest possible total cost – and therefore increase your competitive advantages and opportunities.

Quality Assured
As part of our supplier development and retention process – and to proactively self-regulate our own quality standards – our Technical Services team performs the industry’s most rigorous component testing, both at supplier facilities and our regional worldwide inspection centers. In fact, in many instances, customers have Delegated Initial Sample Approval (DISA) responsibility to Supply Technologies, thus eliminating redundant inspection activities and customer resource requirements.

Our commitment to quality is embodied by our being third-party registered to the following standards: ISO 9001, ISO 14001 and ISO 17025.

Designing Engineering Efficiencies
A critical function of our Technical Services team is its ability to work closely with customers' engineers to design efficiencies into existing and new products. An extension of their own departments, we bring experience in over 100 industries to facilitate design development, improve assembly line ergonomics, and reduce costs.

The Value Analysis/Value Engineering (VA/VE) services provided by our Application Engineering Specialists include:

  • Product introduction and design review
  • Product tear downs
  • Application testing
  • Product standardization
  • Part consolidation
  • Assembly line evaluations
  • Product and industry training
  • Drawing and specification review
  • Drawing and model creation

At our dedicated Tear-Down Facility we literally tear down our customers’ products every day. With the goal of developing the most technically superior end-use products and solutions available in the marketplace, through improved designs, elimination of redundant parts, and assembly efficiency improvements, we enable your engineers to focus on their next innovation.

Utilizing advanced technologies, including 3D, CAD imaging for both end-use product and piece-part design, we have proven time and again that our ultimate value extends beyond individual piece prices. 

Lean

Lean Practices Support: Ongoing Improvement - Yours and Ours

Another way Supply Technologies maximizes value to customers is by adhering to Lean principles in an effort to continuously improve methods and processes.

We apply Plan-Do-Check-Act (PDCA), Kaizen, and Business Process Improvement (BPI) practices, with the result of measureable and sustainable improvements to our customer-focused value stream. Efforts with current customers include:

  • Minimizing footprint at customer sites by increasing flow efficiency and use of Kanban and other “pull” processes
  • Placing product in the “strike zone” to increase operator productivity
  • Using data for problem identification and determining root causes
  • Implementing and sustaining Visual Management/5S

With standardization of processes, relevant metrics and communication between all employees at all levels, our Lean approach enhances our ability to provide fast response to our customers’ changing demands.

Whether we’re servicing your day-to-day operations, working with your Lean team, or assisting you as you begin the Lean journey, we’re single-mindedly focused on efficiency.