CASE #1
Optimization of Supply Chain Network
Objective
To streamline Boart Longyear’s (BLY) supply chain network, resulting in (a) reduced lead times, (b) lower transportation costs, and (c) improved customer satisfaction.
Background:
BLY’s supply chain network had inefficiencies, including long lead times, high transportation costs, and suboptimal supplier management. These factors contributed to higher operational costs and impact the company’s competitive positioning.
Implemented Solution
-Reconfigured the supply chain network by relocating key distribution centers closer to high-demand regions.
-Implemented advanced inventory management systems to optimize stock levels across the network.
-Established strategic partnerships with local suppliers to reduce dependency on international sources and shorten lead times.
Results
during the first 6 months of the solutions implementation
-Cost Savings: Reduction in transportation costs by 20%+.
-Efficiency: Decreased lead times by 35%+, leading to higher inventory turns and faster order fulfillment.
-Customer Satisfaction: Improved on-time delivery rates, enhancing customer loyalty, OPSD improved by 45%.
Investment Required:
Total investment of $257.5K for network reconfiguration, technology implementation, and supplier onboarding.
Return on Investment (ROI):
Achieved ROI within 6 months through cost savings and increased revenue from improved customer retention.
CASE #2
Integration of AI in Supplier Management
Objective
To leverage Artificial Intelligence (AI) to enhance supplier management processes, resulting in better decision-making, risk mitigation, and cost reduction.
Background:
Current supplier management processes relied heavily on manual data analysis, leading to delays in decision-making and potential risks driven by the lack of real-time insights. The company needed to modernize its approach to stay competitive.
Implemented Solution
-Implemented AI-driven analytics to monitor supplier performance in real-time, enabling proactive risk management.
-Used AI to predict demand and adjust supplier orders accordingly, minimizing excess inventory and reducing costs.
-Integrated AI with existing ERP system (SAP) to streamline procurement and supplier communication processes.
Benefits
during the first 5 months of the solutions implementation
-Risk Mitigation: Early detection of potential supplier issues, reducing the impact on the supply chain, negative PPV was reduced 4X.
-Cost Reduction: Decreased procurement costs by 20% through better demand forecasting and optimized ordering.
-Efficiency: Reduced time spent on supplier analysis and decision-making by 60%.
Investment Required:
$222.5K for AI system development, integration, and training.
Return on Investment (ROI):
ROI expected within 5 months, driven by cost savings and improved supplier performance.
CASE #3
New Product Launch Process Improvement
Objective
To improve Honeywell New Product Launch (NPL) process, ensuring faster time-to-market and higher success rates for new products in the Safety and Productivity Solutions BU (SPS).
Background:
Honeywell current NPL process was lengthy and lacked the agility needed to keep up with market demands. Delays in product launches lead to missed revenue opportunities and market share erosion.
Proposed Solution
-Revamped the NPL process by adopting an Agile methodology, allowing for iterative development and faster feedback loops across the R&D, Engineering, and Supply Chain.
-Implemented cross-functional teams to streamline communication and decision-making throughout the product lifecycle.
-Used data analytics to identify potential market trends and adjust product development priorities accordingly.
Benefits
during the first 6 months of the solutions implementation
-Time-to-Market: Reduced product launch time by 55%, allowing Honeywell SPS to capture market opportunities faster.
-Revenue Growth: Increased in revenue from new products by 15%+ driven by quicker market entry.
-Market Share: Strengthen Honeywell SPS competitive positioning by consistently bringing innovative products to market.
Investment Required:
$334.4K for process redesign, team training, and technology integration.
Return on Investment (ROI):
Achieve ROI within 6 months through increased sales from successful product launches.