Ensuring a Power Supply Manufacturer's Production Capability Through End-to-End Transparency - KBC
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Real-world example

Ensuring a Power Supply Manufacturer's Production Capability Through End-to-End Transparency

For a renowned manufacturer of power supply solutions, we optimized the supply chain to ensure production capacity and meet revenue targets. By establishing end-to-end transparency from the end customer to the supplier, we were able to accurately determine material requirements and efficiently plan production.

Background

The COVID-19 pandemic had led to a large backlog of customer orders and high inventory levels. At the same time, production capacity was limited by missing parts. There was a lack of transparency in the ERP system, making it difficult to assess production capabilities and procurement needs.

Specific Task Description

Our task was to ensure complete transparency regarding material requirements, simulate production scenarios, and systematically identify missing parts. The goal was to automate the management of relationships between customer orders, bills of materials, and alternative components, and to optimize production planning.

KBC Approach

We developed a data model to simulate production scenarios and optimize inventory levels. By analyzing master and transaction data in the ERP system, we gained insights into the relationships between sales, purchasing, logistics, and production data. We assessed all missing parts in terms of their criticality with respect to components and suppliers and established a targeted working capital management system.

Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A man with a shaved head and distinctive dark rectangular glasses, smiling warmly at the camera. He is wearing a dark blue suit with a matching jacket and pants over a light blue shirt without a tie, a cognac-colored leather belt, and a silver wristwatch on his right wrist; both hands are in his pants pockets, and he has an upright and confident posture.
Portrait photo of Martin Betz, Director at Kemény Boehme Consultants (KBC). A man with a shaved head and distinctive dark rectangular glasses, smiling warmly at the camera. He is wearing a dark blue suit with a matching jacket and pants over a light blue shirt without a tie, a cognac-colored leather belt, and a silver wristwatch on his right wrist; both hands are in his pants pockets, and he has an upright and confident posture.
Martin Betz
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Impact Achieved

Thanks to the measures we implemented, we were able to extend the forecasting horizon for production planning from 4 to 12 weeks. Raw material inventory relative to revenue generated was reduced by 15%. We established end-to-end transparency regarding all missing parts and enabled a critical assessment of performance. Ultimately, revenue targets were exceeded while simultaneously reducing material inventory ratios.