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Challenge

Adapting the supply chain for double-digit growth

How do you ensure your supply chain can adapt and scale as you grow your business? For one leading supplier to the semiconductor industry, this became a pressing question. Following a period of extremely rapid organic growth, it found its manual supply chain processes weren’t keeping pace with the needs of the business or its customers.

With customer expectations continuously rising, the company recognized it needed to shorten lead times, especially for spare parts. But in an industry where key components are often in constrained supply, doing this while staying competitive would take something different. Advanced abilities to sense and respond in real time to supply fluctuations would be essential.

The ultimate goal? To pivot to an intelligent, digitally connected supply chain – one able to meet evolving customer expectations and support the needs of a fast-growing business.

What Accenture did

Together, we transformed the spare parts planning process by using our SynOps platform to bring together the optimal combination of human + machine talent, driven by data and insights, to create an evolved, intelligent operating model. By standardizing and embedding automation into over 65 separate processes, the company has a more efficient and consistent supply chain function, with the ability to scale to meet increasing demand for their innovative products.

We helped to increase efficiency of their global freight management with a new bill audit process to confirm the accuracy of invoices from carriers and tracking last-mile logistics to ensure customer shipments were complete and on time.

People and culture

Working with Accenture the company was able to build a new mindset around supply chain management. Together, they have transformed spare parts planning to improve efficiency and consistency of processes.

Thanks to the embedding of intelligent operations, including automating 75% of the repetitive spare planning processes, the company's workforce can refocus on critical activities - creating innovative products and serving customers - sure in the knowledge that its supply chain can keep pace with its ambitious growth agenda.

Value delivered

The move to a new operating model has boosted the on-time fill rates of the company's spare parts supply chain and increased saving by preventing the payment of incorrect invoices. A new forecasting model in spare parts planning and field services upgrades has made demand planning more predictable, while a more effective safety stock policy has mitigated the risk of stockouts. Overall, the company has seen a substantial increase in the efficiency of its planning and global transportation management, as well as a significant uplift in workforce performance and automation:

$3M

Benefit to bottom line through automation of processes.

$475K

In savings from improvements in invoice accuracy.

75%

Spare parts supply chain processes automated, leaving teams able to refocus on driving growth.

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